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

Project X Project Z

Year Cash Flow Cash Flow

$0-$$$100,000-$$$100,000$

$160,00010,000$

$240,00030,000$

$330,00040,000$

$410,00080,000$

If Denver's cost of capital is $15$ percent,

A$.$ Which project would you choose and Why?

B$.$ What is the crossover discount rate that make the NPV of both projects equal?