Seven Dwarfs Mining Company entered into a contract to extract gems in Snow County. Extraction began on January 1, 2021 and is expected to last five years (until December 31, 2025). Seven Dwarfs is required to restore the land to an apple orchard after the extraction is complete. It estimates two possible cash flows for restoring the land. It has a credit-adjusted risk free interest rate of 2%. What amount should Seven Dwarfs report as an asset retirement obligation on its balance sheet on December 31, 2022, two years into the extraction process (rounded)? Cash Flow $1 million $2 million Probability 75% 25%