Morpheus & Co. is considering Projects X and Y, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. Please answer the following questions:

1. If we choose the project with higher IRR, how much value would be foregone?

2. What is the cross-over rate?

3. What is the MIRR of Project X?

4. What is the discounted payback period of Project Y?

WACC:15.75% Year0 1 2 3 4 CFx($4,200)$750$1,050$1,650$3,800CFy($2,225)$300$800$1,200$2,000