Consider the following two mutually exclusive projects, X and Y, and their cash flows information,

Cash Flows Project Year 0 Year 1 Year 2 Year 3 Year 4

X ($2,600) $1,000 $1,300 $ 800 $ 400

Y ($3,100) $ 900 $1,500 $1,100 $ 800

Given that Project Xs IRR is 15.16%, which project should be chosen according to the IRR method? Precisely explain how you should construct the incremental project and its cash flows numerically and explain your final selection between these two mutually exclusive projects according to the incremental project (IRR) analysis.