On-Site Testing Service has received four investment proposals for consideration. Two of the proposals, X1 and X2, are mutually exclusive. The other two proposals, Y1 and Y2 are also mutually exclusive. Proposal Y1 is contingent on X1, and Y2 is contingent on X2. Other than these restrictions, any combination of proposals (including null) is feasible. MARR is 10 percent/year. The expected cash flows for the proposals are shown below. A present worth analysis is to be conducted.

a. List all the alternatives to be considered.

b. Determine which (if any) proposals On-Site Testing should accept.

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End of Year 0 X2 Y1 Y2 -$10,000 -$15,000 -$6,000 -$9,000 1 through 8 $1,600 $2,600 $2,500 $3,500