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Which of the following is the ALE for the company?

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?

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A.
$7,000

B.
$10,000

C.
$17,500

D.
$35,000

Explanation:
SLE × 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

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