A firm with a cost of capital of 10% is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $70,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has an initial investment of $120,000 and cash inflows at the end of each of the next four years of $35,000. The firm should ________.

		accept Project X and reject project Z
		accept both the projects because they have equal IRR
		accept Project Z because its IRR is higher than Project X
		reject both the projects because they have negative IRR