General Motors is analyzing a $2,800,000 capital investment with the following data:

• Initial Investment: $2,800,000
• Depreciation @ 12%: $336,000/year
• Book Value at Year-End: $2,464,000, $2,128,000, $1,792,000, $1,456,000, $1,120,000, $784,000, $448,000, $112,000, $0
• Cash Flows: $600,000, $700,000, $600,000, $500,000, $400,000, $300,000, $200,000, $100,000, $50,000
• Profits: $264,000, $364,000, $264,000, $164,000, $64,000, -$36,000, -$136,000, -$236,000, -$286,000
• ARR: 5.5%, 9%, 5.5%, 3%, 1.5%, -1.5%, -3.5%, -6%, -8.5%
• Average Profits: $-8,000
• Average Investment: $1,400,000
• Average ARR: -0.57%
• Payback: 6.5 years
• NPV @ 10%: $110,000

Requirements:

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