Hahn Textiles has a tax loss carryforward of $800,000. Two
firms are interested in acquiring Hahn for the tax loss advantage. Reilly Investment
Group has expected earnings before taxes of $200,000 per year for each of the next
7 years and a cost of capital of 15%. Webster Industries has expected earnings before
taxes for the next 7 years as shown in the following table.
Webster Industries
Year	Earnings before taxes
1	80,000
2	120,000
3	200,000
4	300,000
5	400,000
6	400,000
7	500,000
Both Reilly