GIAC Security Leadership Certification (GSLC) 2020 — Question 3

You are the program manager for your organization. You have proposed a program that will cost $750,000 and will last for four years. Management is concerned with the cost of the program in relation to the return your program will bring. If the rate of return is six percent what is the minimum value your project should return in four years based on the investment of the program?

Answer options

Correct answer: C

Explanation

The correct answer is C, $946,857, which is the future value of the $750,000 investment compounded at a 6% annual rate over four years. Options A and B do not meet the required return based on the rate, and D simply reflects the initial investment without accounting for growth.