6. One of the division managers for Amalgamated Steel is preparing a capital expenditure proposal requesting authorization for the capital required to produce and distribute ultra high- strength cold-rolled steel. This product would be produced at a state-of-the-art mini-mill to be built in Talihina, Oklahoma at a cost of $120 million. Although the mini-mill will have a useful life of 8 years, the IRS allows steel mills to be depreciated to a zero salvage value using straight-line depreciation over a 5-year depreciable life. At the end of 8 years, the mini-mill is expected to have zero salvage value due to innovations in nanotechnology that will replace cold-rolled steel. The mini-mill is expected to produce 100,000 tons of steel per year over the next 8 years, with an average selling price of $960 per ton. The variable costs of steel production, including the cost of the iron ore used in the production of steel, will equal 75 percent of each dollar of sales. The inventory required to market and distribute cold-rolled steel is expected to turn over 10 times per year. Given the credit terms typically offered by competitors, turnover for the accounts receivable required by the project will be 8 times per year. Assuming Amalgamated Steel has a marginal tax rate of 25 percent and a required return of 9 percent, determine the NPV of the proposed investment. (20 points)