As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows:

Project XProject Z

YearCash FlowCash Flow

0-$100,000-$100,000

150,00010,000

240,00030,000

330,00040,000

410,00060,000

If Denver's cost of capital is 15 percent, which project would you choose?

A.Neither project.

B.Project X, since it has the higher IRR.

C.Project Z, since it has the higher NPV.

D.Project X, since it has the higher NPV.

E.Project Z, since it has the higher IRR.