Lucy currently owns a BMW car dealer in Hagerstown, MD. Her team has noticed that many of their new customers live in Chambersburg, PA. They believe that there is an opportunity for expansion. Her team spent significant amount of time discussing the possibility of opening a new dealership in Chambersburg, PA, but could not decide. Lucy estimated that the cost of discussion has reached $30,000 due to loss of productivity for her team; so she decided to hire I&T Consulting firm for $50,000 to survey the area and estimate the demand. The consulting firm has provided some estimations. The consulting firm also recommends renovation of Hagerstown office with an estimated cost of $500,000 regardless of how Lucy will decide on the new dealership.

1 25 Lucy currently owns a BMW car dealer in Hagerstown, MD. Her team has noticed that many of their new customers live in Chambersburg, PA. They believe that there is an opportunity for expansion. Her team spent significant amount of time discussing the possibility of opening a new dealership in Chambersburg, PA, but could not decide. Lucy estimated that the cost of discussion has reached $30,000 due to loss of productivity for her team; so she decided to hire I&T Consulting firm for $50,000 to survey the area and estimate the demand. The consulting firm has provided some estimations. The consulting firm also recommends renovation of Hagerstown office with an estimated cost of $500,000 regardless of how Lucy will decide on the new dealership. Classify whether the following cash flows are relevant or irrelevant to the project for opening a new car dealership at Chambersburg. 1. Cost of discussion $30,000 is (98) 2. Cost of renovation $500,000 is [***] 2