Fair value of the printing press


Problem:

The Daily Tribune is performing an impairment test of its printing press as of December 31, 200X, and estimates that the press will generate net cash flows of $8,000 per year for the next 4 years. The Daily Tribune anticipates a 6% discount rate. Based on discounted future cash flows, which of the following is closest to the fair value of the printing press as of December 31, 200X?

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Finance Basics: Fair value of the printing press
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