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

Harold Coop is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $11,000. 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 $11,000. The following table outlines the expected net cash flows from each investment.

Year ABC ZYX
1 $700 $13,100
2 $1,800 $3,900
3 $3,500 $3,500
4 $7,200 $1,800
5 $9,900 $800
Total $23,100 $23,100

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

NPV of Investment ZXY: $Answer

Better Investment: AnswerABCZYX

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