Java GUI with menu bar and FileReader

Question

I have a menu bar with 3 menus. Each menu has a menu item. Today and Close items are working very good, but the xyz.txt item is not working.

When I click the xyz.txt item I get this exception: Exception:

java.io.FileNotFoundException: xyz.txt (The system cannot find the file specified)

The xyz.txt file is placed in "AWT menu" project and the MenuDemo class is placed in AWT menu/src/awtmenu. I've tried to put the xyz.txt file in src or in awtmenu package but the problem persists.

Where should I place the xyz.txt file?

Any feedback will be apreciated!

This is the code:

import java.awt.Color;
import java.awt.Frame;
import java.awt.Menu;
import java.awt.MenuBar;
import java.awt.MenuItem;
import java.awt.TextArea;
import java.awt.event.ActionEvent;
import java.awt.event.ActionListener;
import java.awt.event.WindowAdapter;
import java.awt.event.WindowEvent;
import java.io.FileReader;
import java.io.IOException;

public class MenuDemo extends Frame implements ActionListener
{
  TextArea ta;
  public MenuDemo()
  {                      // create menu bar
    MenuBar mBar = new MenuBar();
    setMenuBar(mBar);   // add menu bar to frame
                                // create menus
    Menu files = new Menu("Files");
    Menu date = new Menu("Date");
    Menu exit = new Menu("Exit");
    ta = new TextArea(10, 40);
    ta.setBackground(Color.cyan);
                              // add menus to menu bar
    mBar.add(files);
    mBar.add(date);
    mBar.add(exit);
                             // create menu items to menus
    MenuItem mi1 = new MenuItem("xyz.txt");
    files.add(mi1);                 

    date.add(new MenuItem("Today"));
    exit.add(new MenuItem("Close"));
                               // linking listener
    files.addActionListener(this);
    date.addActionListener(this);
    exit.addActionListener(this);

    add(ta, "Center");

    addWindowListener(new WindowAdapter() {

        public void windowClosing(WindowEvent e) {

            System.exit(0); 
        }
    });

    setTitle("Menu Practice");
    setSize(400, 400);
    setVisible(true);
  }

  public void actionPerformed(ActionEvent e)
  {
    String str = e.getActionCommand();

    if(str.equals("Close"))
    {
      System.exit(0);
    }
    else if(str.equals("Today"))
    {
      ta.setText("Today: " + new java.util.Date());
    }
    else
    {
      try
      {
        FileReader fr = new FileReader(str);
        ta.setText("Folloiwing are file contents:\n\n");
        int temp;
        while( (temp = fr.read()) != -1)
        {
          char ch = (char) temp;
          String s1 = String.valueOf(ch);
          System.out.println(s1);
          ta.append(s1);
        }
        fr.close();
      }
      catch(IOException e1)  
      {
        ta.setText("Exception: " + e1);
      }
    }
  }

  public static void main(String args[])
  {
    new MenuDemo();
  }
}