Maxi, Inc. is evaluating the acquisition of Mini, Inc., which had a loss carryforward of $2.75 milion which resulted from earlier operations. Max can purchase Mini for $3.5 million and liquidate the assets for $1.25 million Maxi expects earnings before taxes in the three years following the acquisition to be as follows Year Earnings before Taxes 1 5800,000 2 850,000 3 900,000 les (These earnings are assumed to fuit within the limit legally allowed for application of a tax loss carryforward resulting from the proposed acquisition) Max has a 40 percent tax rate and a cost of capital of 10 percent. The total present value of tax advantage of the acquisition in the following three years is A $842.374 OB $1.1 milion OG $2.75 million OD. $440,374