Magpie Company has several minor lawsuits outstanding. To de…
Magpie Company has several minor lawsuits outstanding. To determine the amount of liability to recognize on the December 31, 2025, statement of financial position, Magpie Company decides to use expected cash flow techniques. Based on discussions with the company’s lawyers, Magpie Company estimates the expected cash outflows (probability-weighted) associated with the lawsuits at the end of each year, as shown below. 2026: ${y},000 2027: ${z},000 Assume a risk-free rate of {x}% and cash flows occurring at the end of the year. Calculate the present value of the lawsuits. (Round the final answer to 0 decimal place.)