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 10%. 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): What is the asset retirement obligation that should be recognized at the beginning of the extraction activities? Note: Round intermediate calculations to one decimal place. Enter your answers in millions rounded to 1 decimal place. Multiple Choice \$22.8 million $38.0 million $30.4 million \$16.3 million TABLE 2 Present value of $1 Table 4 Present Value of an Ordinary Annuity of $1