Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,200 per year for hosting its web? page, handling?transactions, etc.? Hassle-Free figures that it will need to purchase equipment worth $15,200 up front and then spend $1,800 per year on? monitoring, updates, and bandwidth to provide the service for 3 years. If? Hassle-Free's cost of capital is 10.3 % can it bid less than $10,200 per year to provide the service and still increase its value by doing? so?
?Hassle-Free can bid as low as $. ?