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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,

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)?

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