### Computation of present value of a liability

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Computation of present value of a liability

Miner Industries develops an open pit uranium mine and is required to restore the mine area to a natural state at the end of the mine's useful life of 18 years. It is estimated that the restoration will cost \$2,360,000 at that time. What is the present value of this liability given an interest (discount) rate of 7%?

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