(Solution) - Enterprise Capital Leasing Company is in the business of leasing -(2025 Original AI-Free Solution)

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Enterprise Capital Leasing Company is in the business of leasing tractors to construction companies. The firm wants to set a three-year lease payment schedule for a tractor purchased at 53,000 from the equipment manufacturer. The asset is classified as a five-year MACRS property. The tractor is expected to have a salvage value of 122,000 at the end of three years' rental. Enterprise will require a lessee to make a security deposit in the amount of $1,500 that is refundable at the end of the lease term. Enterprise's marginal tax rate is 35%. If Enterprise wants an after-tax return of 10%, what lease payment schedule should be set?