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Sheridan Company must perform an impairment test on its equipment. The equipment will produce the following...

Sheridan Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $38,000; Year 2, $47,000; Year 3, $59,000. The discount rate is 10%. What is the value in use for this equipment? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. The round final answer to 2 decimal places, e.g. 5,275.25.)

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Answer #1

1 N A B с D Pv factor Year Cash Flows @10% Present value 1 $ 38,000 0.90909 $ 34,545.42 2 $ 47,000 0.82645 $ 38,843.15 3 $ 59

A B с D Year Cash Flows Pv factor @10% Present value 1 2 1 38000 0.90909 3 2 47000 0.82645 4 3 59000 0.75131 5_Value in use =

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