This case study considers the problem of the Mexton machines company which has to decide on the location of a new manufacturing facility for an electric lawnmower which is still in the process of development. One of the locations offers greater production capacity than the other. The decision problem is made complex by the possibility that one of the locations may not be available by the time the company know whether or not the development has been successful. Since the cash flows associated with decision will occur over several years the time value of money needs to be taken into account when evaluating the options