Suppose That a 10-Year Lease Saves $200,000 Per Year in After-Tax

Suppose that a 10-year lease saves $200,000 per year in after-tax cash flows,compared to using a loan to purchase an asset.All else equal,and given a usable life of 10 years with no salvage value,what is the advantage of the lease given a discount rate of 7% (round to the nearest $100,000) ?

A) $200,000
B) $1,400,000
C) $1,800,000
D) $2,000,000