$33,627.22 $61,084.74 Question 7 4 pts Barton Steel is considering the purchase of a new steel mill. The first option is a top of the line high efficiency mill with a cost of $20 million. This mill will generate cash flows of $7 million per year for the next six years. At the end of the sixth year, Barton will have to reclaim the land under the new mill at a cost of $14 million. The second option is an economy mill that will generate $4 million in cash flows for the next six years, but require no land reclamation. This mill costs $15 million. If Barton estimates its cost of capital to be 11.2% which project should they accept? Why? Accept economy mill; NPV $9.00 million vs. $8.00 million Accept high efficiency mill; NPV $9.44 million vs $1.83 million Accept economy mill; NPV $9.00 million vs. $-4.56 million Accept high efficiency mill; NPV $2.04 million vs. $1.83 million Question 8 4 pts