Consider a company evaluating two mutually exclusive projects, Project X and Project Y, both of which require an initial investment of $500,000. The company expects to generate the following cash flows:

• Project X: Year 1: $200,000; Year 2: $300,000; Year 3: $250,000.
• Project Y: Year 1: $150,000; Year 2: $350,000; Year 3: $400,000.

The company's cost of capital is 10%. Based on the Net Present Value (NPV) method, which project should the company choose?