Amazon is analyzing a $5,000,000 capital investment with the following data:

• Initial Investment: $5,000,000
• Depreciation @ 20%: $1,000,000/year
• Book Value at Year-End: $4,000,000, $3,000,000, $2,000,000, $1,000,000, $0
• Cash Flows: $1,200,000, $1,400,000, $1,200,000, $1,000,000, $800,000
• Profits: $200,000, $400,000, $200,000, $0, $-200,000
• ARR: 4%, 8%, 4%, 0%, -4%
• Average Profits: $120,000
• Average Investment: $2,500,000
• Average ARR: 4.8%
• Payback: 4.8 years
• NPV @ 10%: $200,000

Requirements:

1. Compute ARR, payback period, and NPV.
2. Discuss the feasibility of the investment.
3. Provide recommendations based on the analysis.