Argyl Manufacturing is evaluating the possibility of expanding its operations. This expansion will require the purchase of land at a cost of $$120,000.$ A new building will cost $$140,000$ and will be depreciated on a straight$-$line basis over $25$ years to a salvage value of $$0.$ Actual land salvage at the end of $25$ years is expected to be $$170,000.$ Actual building salvage at the end of $25$ years is expected to be $$200,000.$ Equipment for the facility is expected to cost $$240,000.$ Installation costs will be an additional $$20,000$ and shipping costs will be $$10,000.$ This equipment will be depreciated as a $7-$year MACRS asset. Actual estimated salvage at the end of $25$ years is $$0.$ The project will require net working capital of $$70,000$ initially $($year $0),$ an additional $$35,000$ at the end of year $1,$ and an additional $$35,000$ at the end of year $2.$ The project is expected to generate increased EBIT $($operating income$)$ for the firm of $$110,000$ during year $1.$ Annual EBIT is expected to grow at a rate of $7$ percent per year until the project terminates at the end of year $25.$ The marginal tax rate is $40$ percent. Use Table $9A-3$ and Table I to answer the questions below. Round your answers to the nearest dollar.

Compute the initial net investment.

$

Compute the annual net cash flow from the project in year $25.$