What is the term for the profit made from an investment, often represented as an interest or discount rate?

The term "return on investment" refers to the profit that an investor makes from an investment and is commonly expressed as a percentage. This measure allows investors to assess the effectiveness or profitability of their investment relative to its cost. It can encompass various forms of profit, including interest earnings or increases in value. This percentage representation helps investors compare the performance of different investments or projects, making it a crucial concept in finance and real estate.

In real estate, the return on investment can help appraisers and investors evaluate potential properties' profitability, guiding decision-making in buying, selling, or funding properties. Understanding the return provides insight into the financial viability and expected returns from various investment strategies.

The other options concern different aspects of financial returns. The capitalization rate is specifically used in real estate and represents the expected rate of return on an investment based on the income that the property is anticipated to generate. Capital recapture refers to the recovery of the original investment amount over time. Dividends are payments made to shareholders from a corporation's earnings, typically not applied in the context of real estate investments.

Overall, "return on investment" directly addresses the inquiry of investment profit and its representation, making it the most appropriate choice for this question.