Walmart is evaluating a $1,200,000 capital investment. The financial details include an initial investment of $1,200,000 and an annual depreciation rate of 10%, resulting in yearly depreciation of $120,000. The book values at the end of each year decrease progressively from $1,080,000 to $0 over ten years. The projected cash flows are $200,000, $220,000, $240,000, $260,000, $280,000, $300,000, $320,000, $340,000, $360,000, and $380,000. The corresponding profits are $80,000, $100,000, $120,000, $140,000, $160,000, $180,000, $200,000, $220,000, $240,000, and $260,000, leading to ARR percentages ranging from 6.67% to 21.67%. The average profits are $172,000, the average investment is $600,000, and the average ARR is 28.67%. The payback period is calculated to be 5.2 years, and the NPV at an 8% discount rate is $130,000.

Requirements:

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

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