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At this rate of return, how long will it take ABC Company to recoup the cost of the safeguard?

To protect its information assets, ABC Company purchases a safeguard that costs $60,000. The annual cost to maintain the safeguard is estimated to be $40,000. The aggregate Annualized Loss Expectancy for the risks the safeguard is expected to mitigate is $50,000.
At this rate of return, how long will it take ABC Company to recoup the cost of the safeguard?

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A.
ABC Company will never recoup the cost of this safeguard.

B.
Less than 7 years

C.
Less than 3 years

D.
Less than 1 year

E.
Less than 5 years


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