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

Project X has cash flows of -100,000 in year 0, 50,000 in year 1, 40,000 in year 2, 30,000 in year 3 and 10,000 in year 4.

Project Z has cash flows of -100,000 in year 0, 10,000 in year 1, 30,000 in year 2, 40,000 in year 3 and 60,000 in year 4.

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