General Electric (GE)

Year	0	1	2	3	4	5
Initial Investment	$2,500,000
Depreciation @ 20%		$500,000	$500,000	$500,000	$500,000	$500,000
Book Value at Year-End	$2,500,000	$2,000,000	$1,500,000	$1,000,000	$500,000	$0
Cash Flows		$700,000	$800,000	$600,000	$500,000	$400,000
Profit		$200,000	$300,000	$100,000	$0	-$100,000
ARR (%)		8%	12%	4%	0%	-4%
Payback (years)			4.5
NPV @ 10%						$120,000

Requirements:

1. Calculate the ARR, payback period, and NPV.
2. Evaluate the investment's financial feasibility.

Provide a recommendation.