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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

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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, "Battilin" Bobby:" You had planned on using the unused capacity to start selling "B8" on the West coast in two years. You would eventually have had to purchase additonal duplicating machines 10 years from today, but using the capaciy for your new product wili require moving this purchase up to 2 years from today. If the new machines will cost $116,000 and can be expensed under Section 179, your marginal tax rate is 21 percent, and your cost of capital is 16 percent, what is the opportunity cost assoclated with using the unused capacity for the new product? (Negative amount should be indicated by a minus sign. Do not round Intermediate caiculations. Round your answer to 2 decimel ploces.)

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