At the end of 2017, Cheyenne Company is conducting an impairment test and needs to develop a fair value estimate for equipment used in its manufacturing operations. Given the nature of Cheyennes production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Cheyennes accountants have developed the following cash flow information for the equipment.
Year		Net Cash Flow Estimate				Probability Assessment
2018		$8,060				30%
		11,210				70%
2019		$(5,950	)			30%
		1,030				40%
		5,660				30%
		Scrap value
2019		$580				60%
		1,210				40%
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Using expected cash flow and present value techniques, determine the fair value of the equipment at the end of 2017. Use a 8% discount rate. Assume all cash flows occur at the end of the year. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)