Johnson & Johnson

Year	0	1	2	3	4	5
Initial Investment	$3,500,000
Depreciation @ 15%		$525,000	$525,000	$525,000	$525,000	$525,000
Book Value at Year-End	$3,500,000	$2,975,000	$2,450,000	$1,925,000	$1,400,000	$875,000
Cash Flows		$700,000	$800,000	$700,000	$600,000	$500,000
Profit		$175,000	$275,000	$175,000	$75,000	-$25,000
ARR (%)		5%	11.22%	7.14%	3.03%	-1.52%
Payback (years)			4.375
NPV @ 10%						$100,000

Requirements:

1. Calculate the ARR, payback period, and NPV.
2. Evaluate the investment's financial feasibility.
3. Provide a recommendation.