ExxonMobil is evaluating a $4,000,000 capital investment. The financial details include an initial investment of $4,000,000 and an annual depreciation rate of 20%, resulting in yearly depreciation of $800,000. The book values at the end of each year decrease progressively from $3,200,000 to $0 over five years. The projected cash flows are $1,000,000, $1,200,000, $1,000,000, $800,000, and $600,000. The corresponding profits are $200,000, $400,000, $200,000, $0, and $-200,000, leading to ARR percentages ranging from 5% to -5%. The average profits are $120,000, the average investment is $2,000,000, and the average ARR is 6%. The payback period is calculated to be 4.5 years, and the NPV at an 8% discount rate is $350,000.

Requirements:

1. Compute the ARR, payback period, and NPV.
2. Analyze the investment's profitability.
3. Make a recommendation on whether ExxonMobil should proceed with the investment.