Detailed Answer please

(iv) As the director of capital budgeting for Denver Corporation, an analyst is evaluating two mutually exclusive projects with the following net cash flows: Year B C 0 1 2 A 3 If Denver's cost of capital is 15%, which project should be chosen? A Project Z, since it has the higher net present value (NPV). Project X, since it has the higher net present value (NPV). Neither project B C 4 Year 1: $3,000 Year 2: $2,000 Year 3: $2,000 Project X -$100,000 $50,000 $40,000 $30,000 $10,000 Project Z -$100,000 $10,000 $30,000 $40,000 $60,000 (v) A company is considering the purchase of a copier that costs $5,000. Assume a cost of capital of 10% and the following cash flow schedule: [2 marks] Determine the projects payback period and discounted payback period. Payback Period Discounted Payback Period 2.0 years 1.6 years 2.0 years 2.4 years 2.4 years 1.6 years Marks Page 3 of 17