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Exam Code: C1000-004

Exam Name: IBM Cúram SPM V7.X Application Developer

Certification Provider: IBM

Related Certification: IBM Cúram SPM V7.X Application Developer

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An administrator wishes to replace a legacy clinical software product as it has become a security risk. The legacy product generates $10,000 in revenue a month. The new software product has an initial cost of
$180,000and a yearly maintenance of $2,000 after the first year. However, it will generate $15,000 in revenue per month and be more secure. How many years until there is a return on investment for this new package?
A. 0
B. 1
C. 2
D. 3
Answer: D
Return oninvestment = Net profit / Investment
Profit for the first year is $60 000, second year = $ 120 000 ; third year = $ 180 000 ; and fourth year = $
240 000
investment in first year = $ 180 000, by year 2 = $ 182 000; by year 3 = $ 184 000 ; and by year 4 = $ 186 000 Thus you will only get a return on the investment in 4 years' time.

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