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EC-CouncilAssociate C|CISO

Domain 5Objective 5

Return on Investment (ROI) and Cost-Benefit Analysis ACCISO Practice Questions (Page 1)

Part of the Strategic Planning, Finance, Procurement, and Vendor Management domain, which makes up ~23% of our current practice bank. EC-Council does not publish an official question count, but from its 120-minute exam (~50–80 total, ~12–18 in this domain), expect 2–3 from this objective — we provide 44 practice questions to prepare you well beyond it. (estimate)

44questions here
9free pages
10concepts

Questions 1–5

  1. 1foundation · easy

    What does the Internal Rate of Return (IRR) represent for a security investment?

    Select an answer first
  2. 2foundation · easy

    A security investment costs $120,000 and is expected to generate net savings of $30,000 per year. What is the payback period?

    Select an answer first
  3. 3expert · hard

    A CISO is comparing two security projects with the same initial cost. Project A has an IRR of 18% and a NPV of $200,000. Project B has an IRR of 15% and a NPV of $350,000. The company's cost of capital is 12%. Which project should be selected?

    Select an answer first
  4. 4expert · hard

    A CISO is analyzing a security automation project. The base-case ROI is 80%, but the benefits depend on the accuracy of the automation. If the automation is 90% accurate, benefits are $500,000; if only 70% accurate, benefits drop to $300,000. The CISO estimates a 60% chance of high accuracy. What is the risk-adjusted expected ROI, assuming costs are $250,000?

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  5. 5foundation · easy

    Which of the following is a tangible benefit of a security investment?

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