Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your CEO is worried a similar situation could happen at your company and has asked you to try and determine if investing in greater cybersecurity
Your CEO is worried a similar situation could happen at your company and has asked you to try and determine if investing in greater cybersecurity is a smart move. You call your friend who works for a major cybersecurity firm and ask what products, pricing, and guarantees they have.
Well, the bad news is they have no guarantees but they can show evidence that even one major attack would result in significant losses for your company. Here is the information you receive:
Cyber attacks are up from prepandemic levels.
The average cost of a cyber attack on a small business ranges from $ to $ million per successful attack.
million people fall victim to cyber crimes yearly.
Your company has been quoted $ million for a new cyber defense system. The new program will likely protect the company for years and then need to be replaced as technology improves. Using sophisticated detection skills, they determine that your companys website faces approximately cyber security incidences a day, days a year. They also estimate that in attacks are successful, and the cost of the average attack is $ due to lost merchandise, notification of the customers affected and time spent by employees following up on the incidents. Using a years MACRS schedule, a tax rate of and a cost of operation of $ a year to monitor the system, should you buy the system? Your company estimates its cost of capital is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started