Dell EMC Specialist – Systems Administrator, VPLEX — Question 12

A company plans to invest $315,000 to cover hardware, software, and deployment expenses. They expect to save $35,000 per month. They are using a decommissioning cost of $35,000 for the old equipment.
After how many months will the company reach the break-even point?

Answer options

Correct answer: B

Explanation

The break-even point is reached when the total savings equal the initial investment minus the decommissioning costs. Here, the calculation is ($315,000 - $35,000) / $35,000 = 8 months. The other options do not accurately reflect the calculation based on the provided figures.