Honda is analyzing a $2,000,000 capital investment with the following data:

• Initial Investment: $2,000,000
• Depreciation @ 12%: $240,000/year
• Book Value at Year-End: $1,760,000, $1,520,000, $1,280,000, $1,040,000, $800,000, $560,000, $320,000, $80,000, $0
• Cash Flows: $350,000, $400,000, $350,000, $300,000, $250,000, $200,000, $150,000, $100,000, $50,000
• Profits: $110,000, $160,000, $110,000, $60,000, $10,000, $-40,000, $-90,000, $-140,000, $-190,000
• ARR: 5.5%, 8%, 5.5%, 3%, 0.5%, -2%, -4.5%, -7%, -9.5%
• Average Profits: $-25,000
• Average Investment: $1,000,000
• Average ARR: -2.5%
• Payback: 6.2 years
• NPV @ 10%: $85,000

Requirements:

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