QUESTION 11 Pita Coal Industries. (PCI) paid $250 million for the right to explore and extract coal from land owned by the state of Pennsylvania. To obtain the rights, PCI agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. Pci incurred exploration and development costs of $60 million on the project. PCI has a credit-adjusted risk free interest rate is 6%. It estimates the possible cash flows for restoring the land, four years after its extraction activities begin, as follows: The Future Value for i=6% and n=4 is 1.26248 The Present Value for i=6% and n=4 is 0.79209 Cash Outflow Probability 20% $ 80 million $ 40 million 30% The asset retirement obligation (rounded to the nearest million) that should be recognized by PCI at the beginning of the extraction activities is: TT T Arial 3 (12pt) TS- Click Save and Submit to save and submit. Click Save All Answers to save all answers