Assume that you start a business to rent out exercise equipment. Pelotons popularity has driven purchase prices up way to high. So you decide renting to others is the way to go. You start with a $3,800 exercise bike. You expect it to last 6 years. It is depreciated immediately. Lease rates for old and new bikes are the same. Pretax administrative costs are $600 per bike in each of the years 1 to 6. The cost of capital is 8.5% and the tax rate is 20%. Lease payments are made in advance (at the start of each year). There is no inflation. What is the break-even operating lease rate for a new exercise bike? Show all your detailed computations to receive full credit.