4.17 Do you think the requirement for an active market should be mandatory when measuring at fair value? What problems can occur when determining fair value of an item in the absence of an active and liquid market? Provide examples to justify your response. LO3, 4 4.18 The following information is provided about a particular machine used by a company in its operations. The machine is technological in nature and new models are coming out all the time. The machine originally cost $80000 and it would cost $140000 now to replace it. The company expects to receive $112000 (discounted to present value) in cash inflows from using this machine over the next five years. If we were to sell it now, the machine would bring in $60000. Consider the decision usefulness of accounting information produced when using each of the above figures as a measure of the value of the machine. In particular, consider usefulness from the perspective of the following stakeholders. (a) Shareholders (b) Creditors (c) Employees L03, 5