AmazWeb is bidding to provide cloud services for EverythingParty Inc. EverythingParty Inc. pays its current provider

$10,000

per year for the service. AmazWeb figures that it will need to purchase equipment worth

$14,800

up front and then spend

$2,100

per year on monitoring and updates to provide the service for

3

years. Potential bidders compete on their per year service charge and submit their bids to EverythingParty. If AmazWeb's cost of capital is

9.9%,

what is AmazWeb's lowest bid that makes financial sense?

AmazWeb can bid as low as

$nothing

per year for providing the service. (Round to the nearest dollar.)