Yuan Inc. has a large piece of machinery, and management has determined there is potential impairment. This piece of machinery has independent cash inflows. The following information relates to the machine:

Net book value is $$30$ million.

The machine could be sold for $$16$ million less a $10\%$ commission.

If the company was forced to sell immediately, the proceeds would likely be $$13$ million.

If the machine continues to be used in production, it is anticipated to generate $$7$ million of cash flows for the next five years. It would require annual maintenance costs of $$300,000$ a year. The equipment could be sold for $$100,000$ at the end of the five years.

Assume Yuan has a discount rate of $5\%.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided. Round time value factor to $5$ decimal places.$)$

Required:

Discuss whether the machine is impaired?

Yes

No

If it is$,$ what is the amount of the impairment loss? $($Enter answer in whole dollars, not in million.$)$