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Question 1: A company's 20 file servers were consolidated onto a NAS device at a cost of $350,000 for thehardware and $75,000 for implementation services. The consolidated/replaced servers were written off
for the remaining book value of $75,000. The company will realize $60,000 per month due to this
consolidation.
What is the return on investment (ROI) in one year and the break-even point for the company's initial
investments?
A. 44%; Month 8
B. 44%; Month 9
C. 70%; Month 8
D. 70%; Month 9
Correct Answer: B
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