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Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $ 5 . 8 million. After the silver is extracted in
Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $ million. 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: $ probability; $ probability; and $ probability. The company's creditadjusted, riskfree rate. of interest is
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