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Albert Fisher is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $18,000. In order to make the purchase, Albert
Albert Fisher is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $18,000. 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 $18,000. The following table outlines the expected net cash flows from each investment. Year ABC ZYX 1 $600 $11,700 2 $1,800 $4,900 3 $3,800 $3,200 4 $7,300 $1,700 5 $8,700 $700 Total $22,200 $22,200 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: $995 NPV of Investment ZXY: $1623 Better Investment: ZYX +
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