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What is net benefit from implementing Preventative Controls

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Question - HH Company keeps a large inventory of hardware products in a warehouse. Last year $500,000 worth of inventory was lost to thieves who broke in through windows and doors. The CFO figures that installing Preventative Controls (steel doors with special locks and burglar bars on the windows) at a cost of $25,000 would eliminate 90% of the loss. Hiring armed guards to patrol the building 16 hours a day at an annual cost of $85,000 would eliminate all of the loss. What is the net benefit from implementing both the Preventative Controls and the armed guards?

Reference no: EM133110584

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