Question: A router that costs $ 1 , 0 0 0 fails 4 times per ycar at a cost of $ 2 5 0 . Your

A router that costs $1,000 fails 4 times per ycar at a cost of $250. Your new intern suggests buying a new router for $5,000, and it would only fail twice a year. The new router and the existing router last about 3 years in this application. You look at the Annual Rate of Occurrence (ARO), Single Loss expectancy (SLE), and the Annual Loss Expectancy (ALE). You decide that:

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