4 2.5 pts Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Montana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project. MMC has a credit-adjusted risk free interest rate is 8%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: Cash Outflow Probability $12 million 30 % $39 million 70 % The asset retirement obligation (rounded) that should be recognized by MMC at the beginning of the extraction activities is: $18.5 million. 24.8 million. 28 million. 24.5 million None of the above