Rebo Inc. owns a product logo which has a carrying value of $170,000. This logo needs to be assessed for impairment on an annual basis. In order to determine if there is an impairment, Rebo must estimate the fair value of the logo based on estimated annual cash flows over the next 5 years. Management has consulted with the marketing department and have determine the following expected cash flows and probabilities for each year. There is no residual value of the logo at the end of its useful life. Cash Flow $14,000 $24,000 $37,000 $48,000 $25,000 Probability 5% 15% 30% 40% 10% Assume cash flows occur at the end of each year. The risk-adjusted rate is 8% and the risk free rate is 5%. Required: a) Determine the fair value of the logo using the expected cash flow approach. (4 marks) b) Is the estimated of valuation of the logo determined in part (a) a level 1, level 2 or level 3 fair value estimate? Explain. (3 marks) c) Identify 2 different types of information might management and the marketing team might use to increase the objectivity of the expected cash flows and probabilities? (2 marks)