Present value question, The Daily Tribune is performing an

Present value question

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Reference no: EM1327852

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?

1. $36,000
2. $34,000
3. $32,000
4. $30,000

Reference no: EM1327852

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