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Harold Coop is considering investing in either ABC or ZYX . Both investments ABC and ZYX cost $ 1 7 , 0 0 0 .

Harold Coop is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $17,000. In order to make the purchase, Harold Coop needs to obtain a loan from the bank at an interest rate of 8%. The bank is only willing to offer Harold Coop $17,000. The following table outlines the expected net cash flows from each investment.
Year ABC ZYX
1 $800 $8,000
2 $1,400 $7,000
3 $3,300 $3,800
4 $6,400 $1,100
5 $8,800 $800
Total $20,700 $20,700
Based on the NPV method, which investment should Harold Coop 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 1 Question 11
NPV of Investment ZXY: $Answer 2 Question 11
Better Investment: Answer 3 Question 11

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