Spy peripherals Incorporated (SPI) is considering the development of the SPI phone 86, and advanced smartphone. Suppose SPI houses the phone in a warehouse that the company COULD HAVE OTHERWISE RENTED out for $750,000 per year during years 1 to 4.

How does this opportunity cost affect the SPI Phones incremental earnings if the company's income is taxed at a rate of 40%?

a.) This results in (increase/decrease) in incremental earnings of $____ year year for the 4 years.