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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 webpage,

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 webpage, handlingtransactions, etc.Hassle-Free figures that it will need to purchase equipment worth $15,000 up front and then spend $1,800 per year onmonitoring, updates, and bandwidth to provide the service for 3 years. IfHassle-Free's cost of capital is 9.9%, can it bid less than $10,200 per year to provide the service and still increase its value by doingso?

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