Q2b – December 2009

Hello

In this question the answer states:

“Year to 31 May 2010 31 May 2011 31 May 2012 31 May 2013 Total
Discounted cash ?ows($000) 267 408 431 452 1,558
The carrying value of the non-current assets at 31 May 2009 is $3 million – depreciation of $600,000. i.e. $2·4 million. Therefore the assets are impaired by $842,000 ($2·4m – $1·558m).”

I do not understand why the 1.558m is being compared to the 2.4m since the 2.4 is at 31st May 2009 while it seems as if the 1,558 is the total for the years 2010 to 2013.