Question: You are considering adding a new software tile to those published by your highly successful software company. If you add the new product. it will
You are considering adding a new software tile 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 capacty to start selling " 8B on the West coast in two years. You would eventually have lad to purchase add tonal duplicating machines 10 years from today, but using the capacity for your new product will require moviag this purchase up to 2 years from today. If the new machines will cosi $103.000 and can be expensed under Section 179 your marginal tax rate is 21 percent, and your cost of capital is 14 percent, what is the opportunity cost associated with using the unused capacity for the new product? iNegotive omount should be indieated by a minus sign. Do not round intermediate coleulotions. Round your onswer to 2 decimal ploces.)
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