Total Cost of Ownership (TCO) and ROI Calculation for Blockchain Use Cases BFC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Why are TCO and ROI often used together when assessing a blockchain investment?

   • ATCO is used for short-term decisions, and ROI for long-term decisions
   • BTCO is used only for hardware, and ROI only for software
   • CTCO calculates the benefits, and ROI calculates the costs
   • DTCO provides the cost baseline, and ROI measures the return on that cost, giving a complete financial picture
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   A company plans to deploy a blockchain solution over a 5-year lifecycle. The initial hardware cost is $50,000, software licenses are $20,000 per year, and annual maintenance is $10,000. What is the total cost of ownership over the 5-year period?

   • A$200,000
   • B$150,000
   • C$80,000
   • D$250,000
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   In a blockchain TCO analysis, which cost category would include the electricity and cooling expenses for running on-premises nodes?

   • APersonnel costs
   • BHardware costs
   • CSoftware costs
   • DOperational expenses
   Reveal Solution Discussion Select an answer first
5. 14application · hard

   A financial institution is evaluating a blockchain-based cross-border payment system. The estimated costs are: initial development $1.5M, annual infrastructure $250K, annual compliance and auditing $180K, annual personnel $350K, and one-time regulatory approval $400K. The system is expected to generate annual savings of $600K. What is the payback period in years?

   • A3.8 years
   • B3.2 years
   • CThe system does not achieve payback within the 5-year evaluation horizon
   • D4.5 years
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   In the context of blockchain implementations, what does Total Cost of Ownership (TCO) primarily represent?

   • AThe initial purchase price of blockchain software licenses and hardware
   • BThe total cost of operating and maintaining a system over its entire lifecycle, including direct and indirect expenses
   • CThe cost of migrating from a legacy system to a blockchain platform
   • DThe annual operational expenditure (OpEx) of running a blockchain network
   Reveal Solution Discussion Select an answer first