Yuan Inc. has a large piece of machinery, and management has determined there is potential impairment. This piece of machinery has independent cash inflows. The following information relates to the machine:

• Net book value is $14 million.
• The machine could be sold for $6 million less a 10% commission.
• If the company was forced to sell immediately, the proceeds would likely be $5 million.
• If the machine continues to be used in production, it is anticipated to generate $3 million of cash flows for the next five years. It would require annual maintenance costs of $200,000 a year. The equipment could be sold for $100,000 at the end of the five years.
• Assume Yuan has a discount rate of 6%.

Required:

Is the machine impaired? If so, what is the amount of the impairment loss?