If an investor pays $1,000 of capital, at the end of the year, he will have ($1,000 return of capital, $100 income and –$20 tax) $1,080.
At the conclusion of the year, if an investor invests $1,000 in capital, they will receive a total of ($1,000 return on investment, $100 income, and a deduction of $20 for taxes), which totals to $1,080.