CPT Inc. is a local manufacturer of conveyor systems. Last year, CPT sold over $ 2 million worth of conveyor systems that netted the company $ 100,000 in profits. Raw materials and labor are CPT’s biggest expenses. Spending on structural steel alone amounted to over $ 500,000, or 25 percent of total sales. In an effort to reduce costs, CPT now uses an online procurement procedure that is best described as a first- price, sealed- bid auction. The bidders in these auctions utilize the steel for a wide variety of purposes, ranging from art to skyscrapers. This suggests that bidders value the steel independently, although it is perceived that bidder valuations are evenly distributed between $ 8,000 and $ 25,000. You are the purchasing manager at CPT and are bidding on three tons of six- inch hot- rolled channel steel against four other bidders. Your company values the three tons of channel steel at $ 16,000. What is your optimal bid?