A company is evaluating two projects with the following details:

Project X:

• Initial Investment: $900,000
• Year 1: $300,000
• Year 2: $300,000
• Year 3: $300,000
• Year 4: $300,000

Project Y:

• Initial Investment: $900,000
• Year 1: $400,000
• Year 2: $350,000
• Year 3: $300,000
• Year 4: $250,000

The discount rate for both projects is 7%.

Questions:

1. Calculate the NPV for Project X and Project Y.
2. Determine the IRR for both projects.
3. Which project should the company choose based on NPV and IRR? Justify your answer.