Sandhill 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, Sandhill decides to use expected cash flow techniques. Based on discussions with the company's lawyers, Sandhill estimates the expected cash outflows associated with the lawsuits, as shown below. Cash Flow Probability Expected Estimate x Assessment - Cash Flow 2020 $5,200 60% $3,120 8,600 40% 3,440 Total $6,560 $6,200 30% $1,860 7,000 4,200 9,200 10% 920 Total $6,980 2021 60% Calculate the present value of the lawsuits assuming a risk-free rate of 5% 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 $