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below demonstrates partial information about these calculations. Threat category SLE Rate of frequency ARO ALE 1 . Internal hardware failure $ 5 , 0 0

below demonstrates partial information about these calculations.
Threat category SLE Rate of frequency ARO ALE
1. Internal hardware failure $5,0001 per week 52 $260,000
2. DDoS attack $75,0001 per year 1 $75,000
3. Phishing attack $5001 per week 52 $26,000
4. City-wide power outage $2,5001 per quarter 4 $10,000
5. Employee vandalism $5,0001 per 6 months 2 $10,000
6. Brute-force attack $5001 per month 12 $6000
7. Data manipulation $5,0001 per year 1 $5000
8. Ransomware $1,5001 per week 52 $78,000
9. Eavesdropping $2,5001 per quarter 4 $10,000
10. Tornado $250,0001 per 20 years 0.05 $12,500Using the following formula to perform a cost
-
benefit analysis
(
CBA
)
,
the company is calculating whether investing in this risk control technology
(
NGFW
)
,
which costs $
6
,
000
annually, is cost
-
effective to mitigate the attack. A positive CBA number indicates a cost
-
effective investment, and a negative number indicates a poor investment.
CBA
=
ALE
(
pre
-
control
)
ALE
(
post
-
control
)
ACS
Where,
ALE
(
pre
-
control
)
=
the annualized loss expectancy of the risk before the implementation of the risk control
ALE
(
post
-
control
)
=
the ALE examined after the risk control has been in place for a period of time
Annual Cost
(
ACS
)
=
the annual cost of the risk control
Based on the formula, what is the CBA in this scenario? Is it cost
-
effective for the company to invest in this security technology? Explain your reasoning.

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