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Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,500 per year for hosting its web

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Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,500 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 $1,900 per year on monitoring, updates, and bandwidth to provide the service for 3 years. If Hassle-Free's cost of capital is 10.4%, can it bid less than $10,500 per year to provide the service and still increase its value by doing so? Hassle-Free can bid as low as $ (Round to the nearest dollar.) You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $5.39 million up front and is expected to generate $1.14 million per year for 10 years and then have some shutdown costs at the end of year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 14.8% on this project. The maximum shutdown costs allowable to still have a positive NPV is $ (Round to the nearest dollar.) Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,500 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 $1,900 per year on monitoring, updates, and bandwidth to provide the service for 3 years. If Hassle-Free's cost of capital is 10.4%, can it bid less than $10,500 per year to provide the service and still increase its value by doing so? Hassle-Free can bid as low as $ (Round to the nearest dollar.) You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $5.39 million up front and is expected to generate $1.14 million per year for 10 years and then have some shutdown costs at the end of year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 14.8% on this project. The maximum shutdown costs allowable to still have a positive NPV is $ (Round to the nearest dollar.)

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