Pablito is interested in starting a store. To supplement the equipment you already have, you need to purchase a small truck that costs $ 20,000 and that qualifies for depreciation for a 3-year MACRS property. The asset is estimated to have a resale value at the end of its six-year useful life of $ 3,000. Operational and maintenance expenses are expected to be $ 1,500 the first year and will increase $ 300 annually from the second year. Uniform annual income of $ 10,000 is expected. In addition, to acquire this alternative you need to make a loan for $ 10,000, which will be repaid according to the amortization schedule shown in the table.

	year	Balance Beginning Year	Accumulated Interest, 9%	Cumulative total	Annual payment	Final balance
	0					12,000
	1	12,000	1080.00	13,080	$3,704.02	$9,375.98
	2	9,376	843.84	10,220	$3,704.02	$6,515.79
	3	6,516	586.42	7,102	$3,704.02	$3,398.19
	4	3,398	305.84	3,704	$3,704.02	$0.00
3	6,516	586.42	7,102	$3,704.02	$3,398.19
4	3,398	305.84	3,704	$3,704.02	$0.00

Generate the table detailing the after-tax analysis of this investment alternative. Apply an effective tax rate of 35%. You must show your calculations in detail to get credit.

After completing your analysis, calculate the measure of merit (decision criterion) that you would use to explain to pablito if this is a good investment. Write a sentence with the recommendation I would give you. Assume a 15% MARR after tax.