At the end of 2025, Vaughn Company is conducting an impairment test and needs to develop...

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At the end of 2025, Vaughn 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 Vaughn's production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Vaughn's accountants have developed the following cash flow information for the equipment. Net Cash Flow Probability Year Estimate Assessment 2026 $6,120 40% 8,170 60% 2027 $(520) 20% 2,070 60% 4,230 20% Scrap value 2027 $520 50% 930 50% 13 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 2025. Use a 4% discount rate. Assume all cash flows occur at the end of the year. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, e.g. 458,581) Fair value of the machinery at the end of 2025 At the end of 2025, Vaughn 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 Vaughn's production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Vaughn's accountants have developed the following cash flow information for the equipment. Net Cash Flow Probability Year Estimate Assessment 2026 $6,120 40% 8,170 60% 2027 $(520) 20% 2,070 60% 4,230 20% Scrap value 2027 $520 50% 930 50% 13 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 2025. Use a 4% discount rate. Assume all cash flows occur at the end of the year. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, e.g. 458,581) Fair value of the machinery at the end of 2025

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