CompTIA CASP+ Practice Test

Based on a $300,000 investment resulting in a 30% savings per software project, how long will it take to achieve a positive ROI with 8 projects averaging $50,000 each?

1. Nearly two years

2. Nearly three years

3. Nearly four years

4. Nearly five years

The correct answer is: Nearly three years

To determine how long it will take to achieve a positive ROI from a $300,000 investment with specific savings per project, the calculation follows these steps: First, calculate the total savings generated by the software projects. With a savings rate of 30% per project on an average cost of $50,000, each project results in: Savings per project = 30% of $50,000 = $15,000. With 8 projects, the total savings would be: Total savings from all projects = 8 projects × $15,000 = $120,000. Next, to find out how long it takes to recover the initial investment of $300,000, we determine how much is saved annually. Since the 8 projects do not have a specified timeframe in this scenario, we can assume they are completed over a period that will lead to a positive ROI calculation. To achieve a positive ROI, the total savings must equal or exceed the initial investment. Thus, we need to determine how many years it will take to accumulate savings equal to the investment. If the projects cumulatively yield $120,000 in savings, we need to calculate how many years of projects or additional projects at the same savings rate would be required to