What is the primary purpose of a cost-benefit analysis for a business continuity solution?

To calculate the exact RTO and RPO values

To ensure compliance with industry regulations

To determine whether the benefits of the solution outweigh its costs

To select the most technically advanced solution

Which of the following is a benefit that should be included in a cost-benefit analysis of a business continuity solution?

Increased complexity of the IT environment

Reduced revenue loss during outages

What is the primary purpose of data replication in a disaster recovery strategy?

To maintain a copy of data at a remote location to minimize data loss

To reduce the cost of primary storage

To replace the need for backup procedures

To improve network bandwidth utilization

A company is considering a $100,000 investment to reduce the risk of a $1 million loss. What does the risk/reward trade-off analysis suggest?

The investment is justified if the probability of the loss is high enough

The investment is only justified if the loss occurs within one year

The investment is always justified because the potential loss is larger

The investment is never justified because the cost is too high

CiscoCertified Design Expert (CCDE)

Domain 1Objective 2

reward) 400-007 Practice Questions (Page 6)

Part of the 1.0 Business Strategy Design domain, which accounts for 15% of the 400-007 exam. Cisco does not publish an official question count, but from its 120-minute exam (~50–80 total, ~8–12 in this domain), expect 2–3 from this objective — we provide 31 practice questions to prepare you well beyond it. (estimate)

31questions here

7free pages

10concepts

15%of the exam

10 Concepts in This Objective

Business Continuity Planning
Disaster Recovery Strategies
Recovery Point Objective (RPO)
Recovery Time Objective (RTO)
Return on Investment (ROI) Analysis
CAPEX vs. OPEX Analysis
Risk Assessment and Management
Risk/Reward Trade-off Analysis
Cost-Benefit Analysis for Continuity Solutions
Operational Sustainability Considerations

Questions 26–30

26foundation · easy
What is the primary purpose of a cost-benefit analysis for a business continuity solution?
Select an answer first
27foundation · easy
Which of the following is a benefit that should be included in a cost-benefit analysis of a business continuity solution?
Select an answer first
28foundation · easy
What is the primary purpose of data replication in a disaster recovery strategy?
Select an answer first
29foundation · easy
A company is considering a $100,000 investment to reduce the risk of a $1 million loss. What does the risk/reward trade-off analysis suggest?
Select an answer first
30expert · hard
A manufacturing company is evaluating a disaster recovery solution. The solution costs $200,000 to implement and $20,000 per year to maintain. The company estimates that a major production outage would cost $1,000,000 in lost revenue and penalties. The probability of such an outage is 5% per year. The company uses a 5-year planning horizon. What is the net present value (NPV) of the solution, assuming a discount rate of 10%? (Round to the nearest dollar.)
Select an answer first

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