Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $750 thousand for the first satellite and $800 thousand for the second. Development will take 5 years at an expected cost of $170 thousand per year for the first satellite, $140 thousand per year for the second. The same launch vehicle can be used for either satellite and will cost $215 thousand at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.1 millon for either satellite. Calisto is also considering launching both satellites. Because Calisto would have to upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150 thousand in addition to the first costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to a total of $350 thousand. An extra compartment would be added to the launch vehicle at an additional cost of $75 thousand. As an incentive to do both, the contracting company will pay for both launches plus a bonus of $1.2 million. Using an internal rate of return analysis with a MARR of 7%/year, what should Calisto Launch Services do?

Which of the following lists indicate the proper alternatives for this problem:

1) First satellite only, second satellite only

2) First satellite only, second satellite only, both satellites

3) First satellite only, second satellite only, both satellites, neither satellite

4) First satellite only or second satellite only or neither satellite