Argyl Manufacturing is evaluating the possibility of expanding its operations. This expansion will require the purchase of land at a cost of $$100,000.$ A new building will cost $$100,000$ and will be depreciated on a straight$-$line basis over $20$ years to a salvage value of $$0.$ Actual land salvage at the end of $20$ years is expected to be $$200,000.$ Actual building salvage at the end of $20$ years is expected to be $$150,000.$ Equipment for the facility is expected to cost $$250,000.$ Installation costs will be an additional $$40,000$ and shipping costs will be $$10,000.$ This equipment will be depreciated as a seven$-$year MACRS asset. Actual estimated salvage at the end of $20$ years is $$0.$ The project will require net working capital of $$70,000$ initially $($year $0),$ an additional $$40,000$ at the end of year $1,$ and an additional $$40,000$ at the end of year $2.$ The project is expected to generate increased EBIT $($operating income$)$ for the firm of $$100,000$ during year $1.$ Annual EBIT is expected to grow at a rate of $4$ percent per year until the project terminates at the end of year $20.$ The marginal tax rate is $40$ percent. $($Hint: See Appendix $9$A for information on MACRS depreciation.$)$ Compute the initial net investment and the annual net cash flow from the project in year $20.$