Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,

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Hassle Free Web Is Bidding To Provide Web Hosting Services For Hotel Lisbon Hotel Lisbon Pays Its Current Provider 10 1 (62.8 KiB) Viewed 37 times

Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,400 per year for hosting its web page, handling transactions, etc. Hassle-Free figures that it will need to purchase equipment worth $14,800 up front and then spend $2,000 per year on monitoring, updates, and bandwidth to provide the service for 3 years. If Hassle-Free's cost of capital is 9.8%, can it bid less than $10,400 per year to provide the service and still increase its value by doing so? Hassle-Free can bid as low as $ (Round to the nearest dollar.)