The Solo Company has obtained the rights to the Sulfer mines on the Endor Planet for $$5\mathrm{.}6$ million dollars. Solo can extract sulfer from the mine for $5$ years and then must restore Endor to its original state. Chewy, Solo's accountant has estimated that it will cost Solo $$500,000$ with a $20\%$ probability, $$550,000$ with a $45\%$ probability or $$650,000$ with a $35\%$ probability to restore Endor after the five years. Because of its great credit rating, Solo can borrow at $6\%.$

Solo expects to extract $4$ million tons of sulfer from the Endor mine.

Required:

determine Solo's initial cost of the Sulfer Mine

In year $1,$ Solo extracts $800,000$ tons of Sulfer which it sells for $$11,000,000$ what is

$2$a$)$ the cost per ton of sulfer? $2$ b$)$ the profit Solo shows in year $1$ from Sulfer mining? $2$ c$)$ the book value of the sulfer mine at the end of year $1$