A proposed project to build handicap ramps for side-load vans requires an investment of $1,500,000, to be depreciated straight-line over a five-year life to zero. Opportunity cost is 16%. Each electric ramp will sell for $22,000, with variable costs of $14,000. Fixed cost are $300,000 per year. Sales are anticipated at 500 units for the five years, or 100 per year. Ignore taxes.

1. The total contribution margin in dollars per year is

Group of answer choices

$500,000

$1,100,000

$800,000

$300,000

2. The NPV is?