The cost of a seven-year lease is $150,000 per year and matches the exact cost of a loan to finance the purchase of equipment.All else equal,and given a usable life of seven years with no salvage value,what is the advantage of a lease given a discount rate of 7% and no taxes?
A) $0
B) $800,000
C) $1,500,000
D) $2,000,000
Correct Answer:
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