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Restoration Costs & Acquisistion, exploration and development number and intial cost is wrong. Everything else is right. Please help me to find the right answer.
Restoration Costs & Acquisistion, exploration and development number and intial cost is wrong. Everything else is right.
Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $6.7million. After the silver Is extracted in approximately five years, Smithson is obligated to restore the land to its original condition, including constructing a wildlife preserve. The company's controller has provided the following three cash flow possibilities for the restoration costs: (1) $610,000,10% probability; (2) $660,000,50% probability; and (3) $760,000,40% probability. The company's credit-adjusted, fisk-free rate of interest is 7\%. (FV of \$1. PV of \$1. EVA of \$1, PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(5) from the tables provided.) What is the initial cost of the silver mine? (Do not round intermediate calculations. Enter your answers in whole dollars.) Please help me to find the right answer.
thank you!
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