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E20-016 Real Exam Prep DEMO
Question 1: A company's IT organization is comparing two technology proposals. Option 1 would retain existinglegacy equipment while Option 2 would replace the existing infrastructure.
Option 1:
-Total operational costs = $300,000 per year -Annual storage requirements = $100,000 per year
Option 2:
-Initial investment = $1,000,000 -Recurring annual operational costs = $150,000 per year -Annual storage
requirements = $50,000 per year
The company's write-off costs for the legacy equipment is $50,000. As a business analyst using a TCO
analysis, which course of action would you recommend?
A. Option 1 is feasible if the project lifespan is less than 5 years
B. Option 1 is feasible if the project lifespan is more than 6 years
C. Option 2 is feasible if the project lifespan is less than 5 years
D. Options 1 and 2 are feasible if the project lifespan is 5 years
Correct Answer: A
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