Current Attempt in Progress

Sunland Mining Company recently purchased a quartz mine that it intends to work for the next $10$ years. According to state

environmental laws, Sunland must restore the mine site to its original natural prairie state after it ceases mining operations at the site.

To properly account for the mine, Sunland must estimate the fair value of this asset retirement obligation. This amount will be

recorded as a liability and added to the value of the mine on Sunland's books.

There is no active market for retirement obligations such as these, but Sunland has developed the following cash flow estimates based

on its prior experience in mining$-$site restoration. It will take $3$ years to restore the mine site when mining operations cease in $10$ years.

Each estimated cash outflow reflects an annual payment at the end of each year of the $3-$year restoration period.

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What is the estimated fair value of Sunland's asset retirement obligation? Sunland determines that the appropriate discount rate for

this estimation is $5\%.($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.$

$458,581.)$

Estimated fair value of Sunland's asset retirement obligation

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