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Hassle - Free Web is bidding to provide webpage hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $ 1 0 2 0

Hassle-Free Web is bidding to provide webpage hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10200 per year for hosting its webpage and
handling transactions on it, etc. Hassle-Free figures that it will need to purchase equipment worth $15100 up front and then spend $1800 per year on monitoring,
updates, and bandwidth to provide the service for 3 years. If Hassle-Free's cost of capital is 10.2%, can it bid less than $10200 per year to provide the service and still
increase its value by doing so?
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