Rowsl proud various ethical policies towards its employees and the wider commu in which it operates. As part of its annual financial statements, the ey is a company that carries out many different activities of its reputation as a caring, organisation and has adopt company publishes details of its environmental policies, which include setting performance targets for activities such as recycling, contro emissions of noxious substances and limiting use of non-renewable resources. The company has an overseas operation that is involved in mining precious metals. These activities cause significant damage to the environment, including deforestation. The company incurred capital costs of $100 million in respect of the mine and it is expected that the mine will be abandoned in eight years' time. The mine is situated in a country where there is no environmental legislation obliging companies to rectify environmental damage and it is very unlikely that any such legislation will be enacted within the next eight years. It has been estimated that the cost of cleaning the site and re-planting the trees wi be $25 million if the replanting were successful at the first attempt, butit will probably be necessary to make a further attempt, which will increase the cost by a further $5 million. The company's cost of capital is 10%. Should a provision for the cost of cleaning the site be made and prepare extracts of the financial statements