Microsoft is considering a $4,000,000 investment in new data centers. The project will depreciate at a rate of 20% annually, leaving book values of $3,200,000, $2,400,000, $1,600,000, $800,000, and $0 at the end of each year. Expected annual cash flows are $1,200,000, $1,400,000, $1,200,000, $1,000,000, and $800,000. The profits are projected at $400,000, $600,000, $400,000, $200,000, and $0, resulting in ARR percentages of 10%, 20%, 10%, 5%, and 0%. The average profit is $320,000, with an average investment of $2,000,000, yielding an average ARR of 16%. The cumulative cash flows indicate a payback period of 3.8 years. The NPV, discounted at 10%, is calculated to be $240,000.

Requirements:

1. Determine the ARR, payback period, and NPV for the investment.
2. Discuss the project's potential financial benefits and drawbacks.
3. Provide a final recommendation on the investment decision.