IBM is evaluating a $750,000 capital investment. The financial details include an initial investment of $750,000 and an annual depreciation rate of 12%, resulting in yearly depreciation of $90,000. The book values at the end of each year decrease progressively from $660,000 to $0 over ten years. The projected cash flows are $120,000, $140,000, $160,000, $180,000, $200,000, $220,000, $240,000, $260,000, $280,000, and $300,000. The corresponding profits are $30,000, $50,000, $70,000, $90,000, $110,000, $130,000, $150,000, $170,000, $190,000, and $210,000, leading to ARR percentages ranging from 4% to 28%. The average profits are $121,000, the average investment is $375,000, and the average ARR is 32.27%. The payback period is calculated to be 5.5 years, and the NPV at an 8% discount rate is $150,000.

Requirements:

1. Compute the ARR, payback period, and NPV.
2. Analyze the investment's profitability.

Make a recommendation on whether IBM should proceed with the investment.