Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,400 per year for hosting its webpage, handlingtransactions, etc.Hassle-Free figures that it will need to purchase equipment worth $15,200 up front and then spend $2,000 per year onmonitoring, updates, and bandwidth to provide the service for 3 years. IfHassle-Free's cost of capital is 9.8%, can it bid less than $10,400 per year to provide the service and still increase its value by doingso?

Hassle-Free can bid as low as $ ?