At the end of 2020, Flounder 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 Flounders production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Flounders accountants have developed the following cash flow information for the equipment.

Year		Net Cash Flow Estimate				Probability Assessment
2021		$6,390				40%
		9,430				60%
2022		$(550	)			20%
		1,920				60%
		4,080				20%
		Scrap value
2022		$510				50%
		990				50%

Click here to view factor tables Using expected cash flow and present value techniques, determine the fair value of the machinery at the end of 2020. 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 2020

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