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Albert Fisher is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $11,000. In order to make the purchase, Albert Fisher

Albert Fisher is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $11,000. In order to make the purchase, Albert Fisher needs to obtain a loan from the bank at an interest rate of 7%. The bank is only willing to offer Albert Fisher $11,000. The following table outlines the expected net cash flows from each investment.

Year ABC ZYX
1 $900 $13,500
2 $1,300 $2,500
3 $3,300 $3,800
4 $7,600 $1,300
5 $8,800 $800
Total $21,900 $21,900

Based on the NPV method, which investment should Albert Fisher purchase? Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative NPV. Use the PV tables in the appendix of the textbook. Round your answers to the nearest whole number. NPV of Investment ABC: $Answer NPV of Investment ZXY: $Answer Better Investment: AnswerABCZYX

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