Linksys is considering the development of a wireless home networking appliance, called HomeNet, which will provide both the hardware and the software necessary to run an entire home from any Internet connection. HomeNet's lab will be housed in warehouse space that the company could have otherwise rented out for $197 000 per year during years 1 to 4. The tax rate for Linksys is 35%. How does this opportunity cost affectHomeNet's incremental earnings?

Linksys is considering the development of a wireless home networking appliance, called HomeNet, which will provide both the hardware and the software necessary to run an entire home from any Internet connection. HomeNet's lab will be housed in warehouse space that the company could have otherwise rented out for $197 000 per year during years 1 to 4. The tax rate for Linksys is 35%. How does this opportunity cost affect HomeNet's incremental earnings? HomeNet wil experience a decrease in incremental earnings of Sper year for the 4 years. (Select from the drop-down menu and round to the nearest dollar.)