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. Which system should be chosen and why? a. System Y should be chosen because System Ys costs are lower starting from the first year. b. System X should be chosen because it has a lower present value of costs. c. System Y should be chosen because it has a lower present value of costs. d. Answers a and b are both correct.