Hassle-Free Web is bidding to provide webpage hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider
Posted: Mon Apr 25, 2022 8:39 am
Hassle-Free Web is bidding to provide webpage hosting services
for Hotel Lisbon. Hotel Lisbon pays its current provider
$10 000
per year for hosting its webpage and handling transactions
on it, etc. Hassle-Free figures that it will need to
purchase equipment worth
$14 800
up front and then spend
$1 900
per year on monitoring, updates, and bandwidth to provide
the service for
3
years. If Hassle-Free's cost of capital is
9.7%,
can it bid less than
$10 000
per year to provide the service and still increase its value by
doing so?
Hassle-Free can bid as low as?
for Hotel Lisbon. Hotel Lisbon pays its current provider
$10 000
per year for hosting its webpage and handling transactions
on it, etc. Hassle-Free figures that it will need to
purchase equipment worth
$14 800
up front and then spend
$1 900
per year on monitoring, updates, and bandwidth to provide
the service for
3
years. If Hassle-Free's cost of capital is
9.7%,
can it bid less than
$10 000
per year to provide the service and still increase its value by
doing so?
Hassle-Free can bid as low as?