1. Allied Managed Care Company is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the decision will be made on the basis of the present value of costs. Allied's corporate cost of capital is 10 percent. Here are the net cash flow estimates:

   Year System X System Y

   0 -$500 -$1,000

   1 -$500 -$300

   2 -$500 -$300

   3 -$500 -$300

   Assume that the systems both have average risk. What are the present values of costs for System X and System Y?

   	a.	System X -$1,584.93 and System Y -$1,587.32
   	b.	System X -$1,743.43 and System Y -$1,746.06
   	c.	System X -$1,674.22 and System Y -$1,576.12
   	d.	System X -$1,593.93 and System Y -$1,587.29