Philip Photocopy ("PP") operates printing services in shopping malls and universities. It is considering expanding the business and have identified two possible sites. Given PP's current circumstances, it can only afford expansion into one of the two sites.

Proposed Sites Cash Outflow Estimated Cash Inflow No. of Year 0 Years 1 to 3 Years 4 to 5 Machines University shop $30,000 $40,000 10 City shop $70,000 $54,000 $54,000 20