Final answer:
The amount, timing, and risk of cash flows can differ between new and old assets.
Step-by-step explanation:
When comparing the amount, timing, and risk of cash flows from a new asset to the cash flows of an old asset, there are several differences to consider.
Amount: The amount of cash flows from the new asset may be higher or lower than the cash flows of the old asset. For example, if the new asset is a more profitable investment, it may generate higher cash flows. On the other hand, if the new asset is a less successful venture, it may generate lower cash flows.
Timing: The timing of cash flows from the new asset may be different from the cash flows of the old asset. For instance, the new asset may start generating cash flows immediately, while the old asset may have a delay before cash flows begin.
Risk: The risk associated with the cash flows of the new asset may be higher or lower than the old asset. The new asset may have higher risk due to factors such as market volatility or uncertain future cash flows. Conversely, the old asset may have higher risk if it is outdated or no longer profitable.