At the end of 2017, Tamarisk Company is conducting an impairment test and needs to develop a fair value estimate for machinery used in its manufacturing operations. Given the nature of Tamarisks production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Tamarisks accountants have developed the following cash flow information for the equipment.

	NET CASH	PROBABIL
YEAR	FLOW EST	ASSESSMENT
2018	6490	40%
	9470	60%
2019	-470	20%
	2140	60%
	4310	20%
	SCRAP VALUE
2019	470	50%
	960	50%

Using expected cash flow and present value techniques, determine the fair value of the machinery at the
end of 2017. Use a		4%	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.)
Fair value of the machinery at the end of 2017=