Santa Cruz Oil is obligated to the State of Nevada to restore leased land to its original condition after its oil drilling activities are completed in four years. The cash flow possibilities are probabilities for the restoration costs in four years are as follows:
$\begin{array}{rc}\text { Cash Outflow }&\text { Probability }\
\text { \$20 million } & 20 \% \
30 \text { million } & 40 \% \
40 \text { million } & 30 \% \
50 \text { million } & 10 \%
\end{array}$

Question

Quizplus · Accepted Answer

The Answer of Santa Cruz Oil is obligated to the State of Nevada to restore leased land to its original condition after its oil drilling activities are completed in four years. The cash flow possibilities are probabilities for the restoration costs in four years are as follows:
$\begin{array}{rc}\text { Cash Outflow }&\text { Probability }\
\text { \$20 million } & 20 \% \
30 \text { million } & 40 \% \
40 \text { million } & 30 \% \
50 \text { million } & 10 \%
\end{array}$

Santa Cruz Oil Is Obligated to the State of Nevada