Ms$.$ T$.$ Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $$400,000.$ Of this sum, $$50,000$ is described by the supplier as an installation cost. Ms$.$ Potts does not know whether the Internal Revenue Service $($IRS$)$ will permit the company to treat this cost as a tax$-$deductible current expense or as a capital investment. In the latter case, the company could depreciate the $$50,000$ 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 kiln if the installation cost is treated as a separate current expense?

b$.$ What is the present value of the cost of the kiln if the installation cost is treated as a part of the capital investment? Note: Round your answer to the nearest whole dollar amount.

a$.$ Present value

b$.$ Present value