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Montana Mining Co . ( MMC ) paid $ 2 0 0 million for the right to explore and extract rare metals from land owned
Montana Mining CoMMC paid $ 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 $ million on the project. has a creditadjusted risk free interest rate is It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: PV of $ PVA of $Use appropriate factors from the tables provided. tableCash Outflow,Probability$ million,
Montana Mining CoMMC paid $ 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 $ million on the project.
has a creditadjusted risk free interest rate is It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: PV of $ PVA of $Use appropriate factors from the tables provided.
tableCash Outflow,Probability$ million,
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