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CAS-003 · Question #83

A security administrator wants to calculate the ROI of a security design which includes the purchase of new equipment. The equipment costs $50,000 and it will take 50 hours to install and configure…

The correct answer is D. 82 percent. Return on investment = Net profit / Investment where:Net profit = gross profit ?expenses investment = stock + market outstanding[when defined as?] + claims

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Question

A security administrator wants to calculate the ROI of a security design which includes the purchase of new equipment. The equipment costs $50,000 and it will take 50 hours to install and configure the equipment. The administrator plans to hire a contractor at a rate of $100/hour to do the installation. Given that the new design and equipment will allow the company to increase revenue and make an additional $100,000 on the first year, which of the following is the ROI expressed as a percentage for the first year?

Options

  • A-45 percent
  • B5.5 percent
  • C45 percent
  • D82 percent

How the community answered

(35 responses)
  • A
    6% (2)
  • B
    6% (2)
  • C
    17% (6)
  • D
    71% (25)

Explanation

Return on investment = Net profit / Investment where:Net profit = gross profit ?expenses investment = stock + market outstanding[when defined as?] + claims

Topics

#ROI calculation#security investment#cost-benefit analysis#financial metrics

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