Montana Mining Co (MMC) paid $200 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 $60 million on the project MMC has a credit adjusted discount rate of 7 It estimates the possible cash flows for restoring the landthree years after its extraction activities begin, as follows Cash Outflow Probability 10 million 60 30 million 40 The total amount capitalized by MMC regarding this property, at the beginning of the extraction is Montana Mining Co (MMC) paid $200 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 $60 million on the project MMC has a credit adjusted discount rate of 7 It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows Cash Outflow Probability 10 million 60 30 million 40 The total amount capitalized by MMC regarding this property, at the beginning of the extraction is

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Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Montana. To

Montana Mining Co. (MMC) paid $200 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 $60 million on the project MMC has a credit-adjusted discount rate of 7%. It estimates the possible cash flows for restoring the landthree years after its extraction activities begin, as follows : Cash Outflow Probability 10 million 60% 30 million 40 % The total amount capitalized by MMC regarding this property, at the beginning of the extraction is image text in transcribed

Montana Mining Co. (MMC) paid $200 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 $60 million on the project MMC has a credit-adjusted discount rate of 7%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: Cash Outflow Probability 10 million 60% 30 million 40 % The total amount capitalized by MMC regarding this property, at the beginning of the extraction is