At this rate of return, how long will it take ABC Company to recoup the cost of the safeguard?
To protect its information assets, ABC Company purchases a safeguard that costs
$60,000. The annual cost to maintain the safeguard is estimated to be $40,000. The
aggregate Annualized Loss Expectancy for the risks the safeguard is expected to mitigate is $50,000.
At this rate of return, how long will it take ABC Company to recoup the cost of the
safeguard?
A. ABC Company will never recoup the cost of this safeguard.
B. Less than 7 years
C. Less than 3 years
D. Less than 1 year
E. Less than 5 years
Answer: B