As the director of capital budgeting for Denver Corporation, an analyst is evaluating two mutually exclusive projects with the following net cash flows:
| Year | Project X | Project Y |
| 0 | -$100000 | -$100000 |
| 1 | $50000 | $10000 |
| 2 | $40000 | $30000 |
| 3 | $30000 | $40000 |
If Denver's cost of capital is 15 percent, which project should be chosen?（ ）
NPV for Project X= -100000+ 50000/(1.15)1+ 40000/(1.15)2 + 30000/(1.15)3+ 10000/(1.15)4= -833
NPV for Project Y=-100000+10000/(1.15)1+30000/(1.15)2+40000/(1.15)3+60000/(1.15)4=-8014
Reject both projects because neither has a positive NPV.