Question

Hassle Free Webblading to provide web hosting services for Hotel Lisbon Hotel Lisbon pays current provider $10.500 per year for hosting its web page handing actions worth $14.600 up front and then spend $2.100 per year on moving updates and bandwidth to provide the service for year s Free's cost of 10.2.con increase its value by doing so? were gres that it will need to purchase than 10.000 per year les provide the service and ant Hassle-Free can bid as low as (Pound the nearest dolor

Answer 1

The company can bid lower than 10500 and can bid the amount of =14800*10.2%/(1-1/(1+10.2%)^3)+2100
=8072.26498292