Your company sells Apple iPods online and has suffered many denial-of-service (DoS) attacks. Your company makes an average $20,000 profit per week, and a typical DoS attack lowers sales by 40%. You suffer seven DoS attacks on average per year. A DoS-mitigation service is available for a subscription fee of $10,000/ month. You have tested this service, and believe it will mitigate the attacks. Is the DoS mitigation service a good investment?

A.
Yes , it will pay for itself

B.
Yes , $10,000 is less than the $56,000 Annualized Loss Expectancy

C.
No, the annual Total Cost of Ownership is higher than the Annualized Loss Expectancy

D.
No, the annual Total Cost of Ownership is lower than the Annualized Loss Expectancy

Explanation:
C . Answer C is correct; the Total Cost of Ownership (TCO) of the DoS mitigation service is higher than Annualized Loss Expectancy (ALE) of lost sales due to DoS attacks. This means its less expensive to accept the risk of DoS attacks (or find a less expensive mitigation strategy).
Answers A , B , and D are incorrect. A is incorrect: the TCO is higher, not lower . $10,000 is the monthly TCO; you must calculate yearly TCO to compare with the ALE. D is wrong: the annual TCO is higher, not lower.