Facebook is evaluating a $700,000 investment in new servers. The depreciation rate is set at 10%, and the book values are expected to decline from $630,000 to $0 over ten years. Projected cash flows are $100,000, $150,000, $120,000, $90,000, $70,000, $50,000, $40,000, $30,000, $20,000, and $10,000. Profits are anticipated to be $30,000, $40,000, $20,000, $10,000, and subsequently negative in the later years, leading to ARR percentages between 4% and -5%. The average profit is $15,000, with an average investment of $350,000, resulting in an average ARR of 4.29%. The payback period is calculated to be 7.8 years, and the NPV at an 8% discount rate is $55,000.

Requirements:

1. Determine ARR, payback period, and NPV.
2. Assess the investment's potential benefits and risks.
3. Make a final investment recommendation.