Gil Has Stolen a "Lancer" from Yu and Changed the Look

question 23

Essay

Gil has stolen a "Lancer" from Yu and changed the look and interior of the car.Gil is now using it for his personal purposes.After some months,Yu comes to know about his car and demands it back.However,Gil demands for the amount he spent on modifications.Can he recover it from Gil? Is Yu liable to pay that?

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Definitions:

Required Return

The minimum amount of profit an investor expects to receive on an investment, accounting for various levels of risk.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Salvage Value

The forecasted salvage value of an asset when it's no longer useful, applied in determining depreciation amounts.

Accounting Rate

The interest rate used in the process of accounting, particularly in discounting cash flows, which can affect the calculation of net present value or internal rate of return.