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 Web page, handling transactions, etc. Hassle-Free figures that it will need to purchase equipment worth

$15,200 up front and then spend $2100 per year on monitoring, updates, and bandwidth to provide the service for three years. If Hassle-Free’s cost of capital is 10.2%, can it bid less than $10,400 per year to provide the service and still increase its value by doing so?