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

Richard Ramirez is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $11,000. In order to make the purchase, Richard Ramirez needs to obtain a loan from the bank at an interest rate of 8%. The bank is only willing to offer Richard Ramirez $11,000. The following table outlines the expected net cash flows from each investment.

Year ABC ZYX
1 $600 $9,600
2 $1,400 $5,700
3 $3,800 $3,600
4 $6,600 $1,800
5 $9,200 $900
Total $21,600 $21,600

Based on the NPV method, which investment should Richard Ramirez 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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