Business
Business, 02.12.2019 20:31, nikidastevens36

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 $15,100 up front and then can spend $2,200 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?

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Answers: 2

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