5 Company Ltd. 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: 5 - Net Book Value = $14M 7- The machine could be sold for $6M less a 10% commission 8 - If the company was forced to sell immediately, the proceeds would likely be $5M - If the machine continues to be used in production, it is anticipated to generate $3M of cash flows for the next 5 years. It would require annual o maintenance costs of $200,000/year. The equipment could be sold for $100,000 at the end of 5 years. 1 - Assume Company has a discount rate of 6%. 3 Is the machine impaired? If so, what is the amount of the impairment loss? 2 4 5 6