Amazon is considering a $3,000,000 capital investment with the following details:

• Initial Investment: $3,000,000
• Depreciation: 20% annually
• Book Values: $2,400,000, $1,800,000, $1,200,000, $600,000, $0
• Cash Flows:
  • Year 1: $500,000
  • Year 2: $700,000
  • Year 3: $600,000
  • Year 4: $400,000
  • Year 5: $300,000
• Profits:
  • Year 1: $100,000
  • Year 2: $200,000
  • Year 3: $100,000
  • Year 4: $0
  • Year 5: -$100,000
• ARR:
  • Year 1: 3.33%
  • Year 2: 11.11%
  • Year 3: 8.33%
  • Year 4: 0%
  • Year 5: -3.33%
• Average Profits: $60,000
• Average Investment: $1,500,000
• Average ARR: 4%
• Payback: 5.3 years
• NPV @ 10%: $80,000

Requirements:

1. Compute ARR, payback period, and NPV.
2. Analyze the investment's viability.
3. Provide a recommendation.