Business, 15.04.2020 22:46 chrisspa13

Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Montana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project. MMC has a credit-adjusted discount rate of 7%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: Cash Outflow Probability $ 10 million 60 % $ 30 million 40 % The total amount capitalized by MMC regarding this property, at the beginning of the extraction is.

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Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from lan...

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