The annual rent at location A is $12000 and an upfront payment of $2000 is required to guarantee the three-year lease. Location B would cost $14400 per year and the rental agreement would be renewed from year to year. The estimated annual revenue is $18000 for both locations. The anticipated rate of return is 10% per year. Determine which location would be better by considering the associated net present values.

Note: For simplicity, you can assume that the rental starts in a year from now.