Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $5.6 million. After the silver is extracted in approximately five years, Smithson is obligated...

Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled
$5.6 million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to
its original condition, including constructing a wildlife preserve. The company’s controller has provided the following three cash flow possibilities for the restoration costs: (1) $500,000, 20% probability; (2) $550,000, 45%
probability; and (3) $650,000, 35% probability. The company’s credit-adjusted, risk-free rate of interest is 6%.
What is the initial cost of the silver mine?