On May 1, 2018, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $10.4 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development 3,600,000 145,400 88,200 costs in preparing the mine Mining equipment Construction of various structures on site After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $11,000. The structures will be torn down. Geologists estimate that 840,000 tons of ore can be extracted from the mine. After the ore is removed the land will revert back to the state of New Mexico. The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs Probability 30% 40% 30% Cash Outflow $640,000 740,880 840,080 Hecala's credit-adjusted risk-free interest rate is 9%. During 2018, Hecala extracted 124O0Otons of ore from the mine. The company's