A security administrator is tasked with calculating the total ALE on servers. In a two year period of time, a company has to replace five servers. Each server
replacement has cost the company $4,000 with downtime costing $3,000. Which of the following is the ALE for the company?

A.
$7,000

B.
$10,000

C.
$17,500

D.
$35,000

Explanation:
SLE Ч ARO = ALE, where SLE is equal to asset value (AV) times exposure factor (EF); and ARO is the annualized rate of occurrence.
SLE =($4000 + $3000) x 5 = $35000
ARO = 2 years Thus per year it would be 50% = 0,5

The ALE is thus $35000 x 0.5 = $17500
Incorrect Answers:
A: $7000 would be the SLE if there was only one server to consider.
B: A $10000 amount is ignoring the downtime costs that will be incurred.
D: A $35000 amount assumes that the servers must be replaced every year, and not every second year.

Dulaney, Emmett and Chuck Eastton, CompTIA Security+ Study Guide, Sixth Edition, Sybex, Indianapolis, 2014, pp 5-6