Kevin and Sally are considering opening a new franchise restaurant, Cucamonga Hot Wings (CHW). CHW will sell six flavors of chicken wings at an anticipated price of $10 per dozen. Sally's parents, who previously owned a similar business, will donate all the equipment they need. Kevin and Sally will maintain CHW's accounting information system using accrual-basis accounting principles. Indicate whether each item in the following list is (R)relevant or (N)not relevant to an NPV analysis of this proposed investment.

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The Answer of Kevin and Sally are considering opening a new franchise restaurant, Cucamonga Hot Wings (CHW). CHW will sell six flavors of chicken wings at an anticipated price of $10 per dozen. Sally's parents, who previously owned a similar business, will donate all the equipment they need. Kevin and Sally will maintain CHW's accounting information system using accrual-basis accounting principles. Indicate whether each item in the following list is (R)relevant or (N)not relevant to an NPV analysis of this proposed investment.

Kevin and Sally Are Considering Opening a New Franchise Restaurant