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RECOVERY OF LOST CAPITAL VS. RECOVERY OF LOST PROFITS The loss of capital results in decrease in net worth while the loss of profits does

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RECOVERY OF LOST CAPITAL VS. RECOVERY OF LOST PROFITS The loss of capital results in decrease in net worth while the loss of profits does not decrease net worth. The recovery of lost capital merely maintains net worth while the recovery of lost profits increases net worth. Therefore, the recovery of lost profits is a return on capital

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