Hayley Medical, Inc. is evaluating the acquisition of Health -o-Matic, Inc., which had a loss carryforward of $3.75 million, resulting from earlier operations. Hayley Medical can purchase Health -o-Matic for $4.5 million and liquidate the assets for $3.25 million. Hayley Medical expects earnings before taxes in the three years following the acquisition to be as follows: Year Earnings before Taxes 1 $1,270,000 2 1,662,400 3 1,275,000 (These earnings are assumed to fall within the annual limit legally allowed for application of a tax loss carryforward resulting from the proposed acquisition.) Hayley Medical has a 40 percent tax rate and a cost of capital of 15 percent. The approximate maximum cash price Hayley Medical would be willing to pay for Health -o-Matic is O A. $4,757,000 O B. $4,253,000 O C. $4,409,600 OD. $3,750,000