Question: AC knows that when it ceases a certain operation in four years' time it will have to pay environmental cleanup costs of $3 million. The

AC knows that when it ceases a certain operation in four years' time it will have to pay environmental cleanup costs of $3 million. The company's cost of capital is 8%. The 8% four-year discount factor is 0.735. What will be the finance cost arising from this provision in Year 2?

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