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 percent and no taxes? Explain your answer

A) $0

B) $800,000

C) $1,500,000

D) $2,000,000