Capital Budgeting

Sir I have a problem with the following question A company is planning to open a new store in a new geographic location.An initial site evaluation has taken place at a cost of $5000 and a store location has been found.The new store can be rented for $9500 per annum.It will require refurbishment at a cost of $320,000 Which of the following costs are relevant for an NPV calculation? 1) $5,000 2) $9,500 3) $320,000 Sir the answer in the book said 2)&3) My doubt is why can't all of them be the answer They said that they are evaluating the initital cost but they never said that they have already bought the land The question seems to say that they are also planning to open a new store However, the book answer says that $5,000 is already a cost incurred in the business and is a sunk cost How is this possible sir They haven't even told that the land is bought They just said it is being 'evaluated' If it is being evaluated it means they haven't come to a decision yet ryt and it is being planned for the future So I thought all of them are future costs but the book says that the 5000 is already a cost borne Sir please help me clear this confusion and explain how the book came up to a decision to assume that the 5000 was already a sunk cost Thank you