Your company is considering two mutually exclusive projects. X1 and X2; also considered are 2 projects, Y and Z. Independant of the X projects and each other. The project costs and the cash flows are shown below.

Years	X1	X2	Y	Z
0	-$2000	-$2000	-$15000	-$25000
1	200	2000	5000	8500
2	600	200	5000	8500
3	800	100	5000	8500
4	1400	75	5000	8500

Projects X1 and X2 are equally risky, and the firms required rate of return is 12%. Which project should be accepted and which should be rejected? Please base your decision on any method, but justify the use of the method you have choosen.