Detailed Answer
(a) According to SFAC 7, the objective of using present
value in an accounting measurement is to capture, to the extent
possible, the economic difference between sets of future cash
flows. The objective of present value, when used in accounting
measurements at initial recognition and fresh-start measurements,
is to estimate fair value. Stated differently, present value
should attempt to capture the elements that taken together
would comprise a market price, if one existed, that is fair value.
Value-in-use and entity-specific measurements attempt to capture
the value of an asset or liability in the context of a particular
entity. An entity-specific measurement substitutes the entity’s
assumptions for those that marketplace participants would make.