In financial analysis, which term would indicate a positive return on investment?

A positive return on investment (ROI) signifies that the gains from an investment exceed the costs associated with it. The term "positive average rate of return" directly indicates that the investment has generated more income compared to its initial outlay, leading to positive financial results. This metric plays a crucial role in evaluating the effectiveness of investments, helping investors to assess their performance over time.

For instance, if an investment yields a return of more than its cost, it means that the investor is making a profit. Understanding the average rate of return is essential in making informed decisions about where to allocate resources, as it allows for comparisons between different investment opportunities.

Other options, such as negative cash flow and zero sum, indicate either losses or no net gain, thus are not reflective of a positive investment outcome. A cost advantage typically refers to a competitive strategy rather than a direct measurement of ROI itself, and while it may contribute to better returns, it does not inherently indicate that those returns are positive.