Zoom Car Corporation (ZCC) plans to purchase approximately 100 vehicles on December 31, 2015, for $2.5 million, plus 11 percent total sales tax. ZCC expects to use the vehicles for 5 years and then sell them for approximately $525,000. ZCC anticipates the following average vehicle use over each year ended December 31 2016 15,000 2017 20,000 2018 11,250 2020 5,000 Miles per year 11,250 To finance the purchase, ZCC signed a 5-year promissory note on December 31, 2015, for $2.25 million, with interest paid annually at the market interest rate of 5 percent. The note carries loan covenants that require ZCC to maintain a minimum times interest earned ratio of 3.0 and a minimum fixed asset turnover ratio of 1.0. ZCC forecasts that the company wil generate the following sales and preliminary earnings (prior to recording depreciation on the vehicles and interest on the note). (For purposes of this question, ignore income tax.) (in 000s) Sales Revenue 2017 2018 2019 2020 2,500 3,000 3,300 3,400 3,500 1,450 1,650 1,750 1,850 2016 Income before Depreciation and Interest Expense 1,250