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eBook 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 $100,000 and will be deprecated 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 $210,000. Actual building salvage at the end of 25 years is expected to be $150,000. Equipment for the facility is expected to cost $260,000. Installation costs will be an additional $20,000 and shipping costs will be $14,000. 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 worldng capital of $65,000 Initially (year o), an additional $50,000 at the end of year 1, and an additional $50,000 at the end of year 2. The project is expected to generate increased EBIT (operating income) for the firm of $80,000 during year 1. Annual Edit is expected to grow at a rate of 3 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 1 to answer the questions below. Round your answers to the nearest dolor Compute the initial net Investment. $ Compute the annual net cash now from the project in year 25

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