Its said that straight line depreciation with half year convention is supposed to be used with 5-year class life. Using this rule you should compare the present value of the depreciation tax shields. Also that year 1-6 you will get the deprecation tax shields, get the present value for all tax shields. the opportunity cost is the difference in PV terms in having to pay the PV(tax shields) derived in two years verus 10 years. These are the rulse that are supposed to be used for this calucation but i still don't understand it.

You are considering adding a new software title to those published by your highly successful software company, If you add the new product, it will use capacity on your disk duplicating machines that you had planned on using for your flagship product, "Battlin" Bobby:" You had planned on using the unused capacity to start selling "BB" on the West coast in two ycars, You would eventually have had to purchase additional duplicating machines 10 years from today, but using the capacity for your new product will require moving this purchase up to 2 years from today. If the new machines will cost $110,000 and can be expensed under Section 179 , your marginal tax rate is 21 percent, and your cost of capital is 12 percent, what is the opportunity cost assoclated with using the unused capacity for the now product? (Negative amount should be Indicated by a minus sign. Do not round intermediate calculatlons. Round your answer to 2 decimal places.)