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 8%. 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 $13 million $ 39 million 30% 709 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 $31.2 milion $24.8 million $18.3 million