E20-016 Free Dumps Study Materials
Question 7: A company is comparing two technology options for their IT environment. Option 1 is to retain the
existing legacy environment, and Option 2 will require the replacement of the current solution with a new
solution.
Option 1:
-Operation costs including maintenance of the current infrastructure = $300,000 per year -Investment in
additional storage requirements = $100,000 per year
Option 2:
-Initial cost of the new solution = $1,000,000 -Operation costs with the new infrastructure = $150,000 per
year -Investment in additional storage = $50,000 per year
The company's write-off cost for the current solution is $50,000. As a business analyst, what would you
recommend to the company based on the TCO?
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