What is the approximate cost of replacement and recovery operation per year of a hard drive that has a value of $300 given that the technician who charges $10/hr would need 10 hours to restore OS and

$440 represents the SLE (Single Loss Expectancy) - the total cost for a single incident - and does not account for how frequently the loss event occurs annually, so it is not the ALE.

$100 does not result from any standard SLE, ARO, or ALE formula applied to the given values of $300, $10/hr, 14 hours, and EF = 1.

$1320 equals SLE x ARO of 3, which would imply the hard drive fails three times per year - an unrealistic frequency that is not supported by the scenario.

SLE is calculated as (asset value + recovery labor) x EF = ($300 hard drive + (10 + 4 hours x $10/hr)) x 1.0 = $440. Applying an implied ARO of 1/3 (one failure per three years, a standard assumption for hard drive MTBF in this exam scenario), ALE = $440 x 0.333 = approximately $147, making $146 the closest correct answer.