XYZ Inc. is considering two projects whose cash flows are shown below. The two projects are mutually exclusive and the CFO will only consider projects having a discounted payback of at most 2.25 years. This restriction, therefore, leaves open the possibility that value will be foregone. How much value will be lost in this instance? 10.25% WACC Year 0 1 2 3 4 300 $ 600 $ 400 Project 1 $ Project 2 $ (1,050) $ (1,600) $ 900 $ 900 $ 1,000 $ 850 $ 150 O $29.80 O No value is lost in this scenario $27.32 O $33.11