Total Cost of Ownership (TCO) and ROI Calculation for Blockchain Use Cases BFC Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   A supply chain company is evaluating a blockchain solution to reduce paperwork costs. The TCO is $500,000 over 5 years, and the expected annual savings are $120,000. What is the ROI over the 5-year period?

   • A120%
   • B20%
   • C100%
   • D24%
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which of the following best describes the scope of Total Cost of Ownership (TCO) for a blockchain deployment?

   • AOnly the costs incurred during the initial development and deployment phase
   • BOnly the recurring costs such as cloud fees and maintenance
   • CThe total cost of the blockchain network's cryptocurrency tokens or coins
   • DAll costs from initial planning through decommissioning, including hardware, software, personnel, and operational expenses
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A healthcare provider is planning a blockchain-based patient consent management system. The project manager is compiling the TCO. Which of the following should be categorized as an indirect cost?

   • AAnnual software licensing fees for the blockchain platform
   • BProductivity loss during staff training and workflow transition
   • CPurchase of dedicated server hardware for the blockchain nodes
   • DCloud infrastructure usage fees for running the network
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A startup is building a decentralized identity solution on a public blockchain. The founders are preparing a TCO estimate for investors. Which cost component is often overlooked but should be included?

   • AThe cost of the physical servers that host the blockchain network
   • BTransaction fees paid to the network for each identity verification
   • CThe purchase price of the blockchain protocol's source code
   • DThe cost of mining hardware to secure the network
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A company is comparing a blockchain-based loyalty program with a traditional points database. The project manager wants to ensure the TCO analysis captures the full cost of ownership. Which component is most likely to be underestimated in the blockchain option?

   • AThe cost of customer acquisition for the loyalty program
   • BThe cost of the database software license
   • CEnergy consumption of the consensus mechanism
   • DThe cost of physical storage for paper records
   Reveal Solution Discussion Select an answer first