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

Year Project X Project Z

0 $100,000 $100,000

1 50,000 10,000

2 40,000 30,000

3 30,000 40,000

4 10,000 60,000

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

	A.	a. Neither project.
	B.	b. Project X, since it has the higher IRR.
	C.	c. Project Z, since it has the higher NPV.
	D.	d. Project X, since it has the higher NPV.
	E.	e. Project Z, since it has the higher IRR.