A company expects to incur 1,000,000 in environmental remediations cost in 10 years to restore land at one of the production sites it is currently operating using an 8% interest rate, the implied annual interest is 1,000,000 x 0.08 = $80,000, and the present value of the remediation cost is 1,000,000 x 0.46319 = 463190. which amount must the company currently as an asset retirement obligation (ARO) in accordance with generally accepted account principles (GAAP)?

1. 463,190

2. 536,810

3. 1,000,000

4. 1,800,000