Ford is analyzing a $3,200,000 capital investment with the following data:

• Initial Investment: $3,200,000
• Depreciation @ 20%: $640,000/year
• Book Value at Year-End: $2,560,000, $1,920,000, $1,280,000, $640,000, $0
• Cash Flows: $800,000, $900,000, $800,000, $700,000, $600,000
• Profits: $160,000, $260,000, $160,000, $60,000, $-40,000
• ARR: 5%, 13.54%, 8%, 3.75%, -6.25%
• Average Profits: $120,000
• Average Investment: $1,600,000
• Average ARR: 7.5%
• Payback: 4 years
• NPV @ 10%: $150,000

Requirements:

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