On March 1, 2018, Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 100,000 tons of mineral. As part of the agreement, Shipley agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now:

Cash Outflow					Probability
$	300,000						25	%
	400,000						50	%
	500,000						25	%

A) $30,326.

B) $20,697.

C) $24,837.

D) $27,294.

Answer rating: 100% (QA)

b 20697 300000 x 25 75000 400000 x 50 200000 500000 x 25 125000 40... View the full answer