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2. 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

2. 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 $15 200 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 9.6%, can it bid less than $10 000 per year to provide the service and still increase its value by doing so?

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