Ford is analyzing a $1,000,000 capital investment with the following data:

• Initial Investment: $1,000,000
• Depreciation @ 10%: $100,000/year
• Book Value at Year-End: $900,000, $800,000, $700,000, $600,000, $500,000, $400,000, $300,000, $200,000, $100,000, $0
• Cash Flows: $150,000, $200,000, $180,000, $160,000, $140,000, $120,000, $100,000, $80,000, $60,000, $40,000
• Profits: $50,000, $100,000, $80,000, $60,000, $40,000, $20,000, $0, $-20,000, $-40,000, $-60,000
• ARR: 5%, 10%, 8%, 6%, 4%, 2%, 0%, -2%, -4%, -6%
• Average Profits: $12,000
• Average Investment: $500,000
• Average ARR: 2.4%
• Payback: 6.7 years
• NPV @ 12%: $70,000

Requirements:

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