A company paid $$200$ million for the right to explore and extract rare metals from land owned by the state. To obtain the rights, the company agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. The company incurred exploration and development costs of $$60$ million on the project.

The company has a credit$-$adjusted risk$-$free interest rate is $7\%.$ It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: $($PV of $$1,$ PVA of $$1)$

Cash Outflow Probability

$ $10$ million $60\%$

$ $30$ million $40\%$

What is the asset retirement obligation that should be reported on the balance sheet one year after the extraction activities begin?