Ivanhoe Repairs Ltd. has several minor lawsuits outstanding on December 31, 2019. To determine the amount of liability to recognize on the statement of financial position, Ivanhoe decides to use expected cash flow techniques. Based on discussions with the company's lawyers, Ivanhoe estimates the expected cash outflows associated with the lawsuits, as shown below. Cash Flow Estimate Probability Assessment = Cash Flow Expected 2020 $5,000 60% $3,000 7,700 40% 3,080 Total $6,080 2021 $6,300 30% $1,890 7,100 50% 3,550 8,600 20% 1,720 Total $7,160 Calculate the present value of the lawsuits assuming a risk-free rate of 4% and cash flows occurring at the end of the year. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Present value $