Suppose the present value of cash ins and outs is very close to balanced for a project

Question:

Suppose the present value of cash ins and outs is very close to balanced for a project to build a new $50 million factory, so that the NPV is +$25,000. The same company is thinking about buying a new trailer truck for $150,000. The NPV of projected cash flows associated with the truck is also about $25,000. Does this mean that the two projects are comparable? Is one more desirable than the other? If the cash flows have similar risks, are the projects equally risky?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: