Sports Gear Ltd is a company that makes clothing. The company has a product line that pro- duces women's tops of regular sizes. The same machine could be used to produce petite sizes as well. However, the remaining life of the machines will be reduced from 4 years to 2 years if the petite size production is added. The cost of identical machines with a life of 8 years is $1 300 000. Assume the opportunity cost of capital is 15 per cent. What is the opportunity cost of adding petite sizes?