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 company will need 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 five years How will the tax authority's decision affect the after-tax cost of the kiln? The tax rate is 25%, and the opportunity cost of capital is 5% (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) PV Tax shield Installation cost is expended at the end of year 1 If installation cost is capitalized and depreciated over 5 years After tax cost is smaller After tax cost is larger