Return on Investment (ROI) and Cost-Benefit Analysis ACCISO Practice Questions (Page 9)

Questions 41–44

1. 41application · medium

   A company is evaluating the total cost of ownership for a new security operations center (SOC). Which of the following costs should be categorized as an indirect cost?

   • AHardware purchase costs
   • BSoftware license fees
   • CSalaries of dedicated SOC analysts
   • DProductivity loss from employees attending security training
   Reveal Solution Discussion Select an answer first
2. 42foundation · easy

   Which of the following is a common method to incorporate risk into ROI analysis?

   • AUsing a higher discount rate for riskier projects
   • BAlways using the highest cost estimate
   • CAssuming all benefits will be realized as estimated
   • DIgnoring intangible benefits
   Reveal Solution Discussion Select an answer first
4. 43expert · hard

   A company is evaluating two security projects with different scales. Project A requires a $1 million investment and is expected to generate $200,000 in annual benefits for 10 years. Project B requires a $100,000 investment and is expected to generate $30,000 in annual benefits for 5 years. The company's cost of capital is 8%. Which project should be selected if they are mutually exclusive?

   • ANeither project, because the IRR and NPV conflict
   • BEither project, because both have positive NPV
   • CProject B, because it has a higher IRR
   • DProject A, because it has a higher NPV
   Reveal Solution Discussion Select an answer first
5. 44foundation · easy

   If a security project has an NPV of zero, what does this indicate?

   • AThe project is not financially viable
   • BThe project's returns exactly match the discount rate used
   • CThe project will generate no benefits at all
   • DThe project has a negative payback period
   Reveal Solution Discussion Select an answer first