Jackpot Mining Is Obligated to the State of California to Restore

question 25

Essay

Jackpot Mining is obligated to the State of California to restore leased land to its original condition after its mining activities are over in six years. The cash flow possibilities and probabilities for the restoration costs in six years are as follows:
The company's credit-adjusted risk-free interest rate is 4%.
Required:
Calculate the liability that Jackpot must record at the beginning of the project for the restoration costs.
$$\begin{array} { c c } \text { Cash Outflow } & \text { Probability } \\\hline \text { \$5 million } & 10 \% \\10 \text { million } & 30 \% \\12 \text { million } & 40 \% \\15 \text { million } & 20 \%\end{array}$$

---

Definitions:

Retinal Ganglion Cells

Retinal ganglion cells are neurons located in the retina that transmit visual information from the eye to the brain through their axons, which form the optic nerve.

Partial Lack

A situation where there is a deficiency or insufficiency of something, but it is not completely absent.

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.

Male Population

Refers to the portion of the population that identifies as male or is assigned male at birth.