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A firm with a cost of capital of 10% is evaluating two independent projects utilizing the...

A firm with a cost of capital of 10% is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $70,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has an initial investment of $120,000 and cash inflows at the end of each of the next four years of $35,000. The firm should ________.

accept Project X and reject project Z

accept both the projects because they have equal IRR

accept Project Z because its IRR is higher than Project X

reject both the projects because they have negative IRR
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