Help Week 10 Homework F370 (DCF Analysis 11 833 point Ms. T. Potts, the treasurer of ideal China, has a problem. The company has just ordered a new lin for $720.000. Of this sum, 590,000 is described by the supplier as an installation cost. Ms. Potts does not know whether the Internal Revenue Service (RS) will permit the company to treat this costas a tax deductible current expense or as a capital investment in the latter case, the company could depreciate the $90,000 straight-line over 5 years. The tax rate is 30% and the opportunity cost of capital is 5% a. What is the present value of the cost of the kin if the installation cost is treated as a separate current expense? b. What is the present value of the cost of the won if the installation cost is treated as a part of the capital investment? (Round your answer to the nearest whole dollar amount.) Presenta Present value