Simpson Mining is obligated to restore leased land to its original condition after its excavation activities are completed in three years. The cash flow possibilities and probabilities for the restoration costs in 3 years are as follows:

Cash overflow				Probability
$	120,000			40	%
	170,000			40	%
	220,000			20	%

The company's credit-adjusted risk-free interest rate is 5%. The liability that Simpson must record at the beginning of the project for the restoration costs is (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 and round final answer to nearest whole dollar amount.):

Multiple Choice

Top of Form

$146,853

$138,214

$160,000

$190,045

Bottom of Form