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Answer: Calculate the value of improved availability to be $900, and determine that the increase in availability is not worth the investment.
The value of improved availability is calculated by determining the reduction in downtime and its revenue impact. Current downtime at 99.9% availability is 525.6 minutes per year, and improved downtime at 99.99% availability is 52.56 minutes per year, resulting in a reduction of 473.04 minutes. With annual revenue of $1,000,000, the revenue per minute is approximately $1.9026. Thus, the value of improvement is 473.04 × $1.9026 ≈ $900. Alternatively, using percentages: the reduction in downtime loss is 0.09% (0.1% - 0.01%), and 0.09% of $1,000,000 = $900. The investment cost is $2,000. Since $900 < $2,000, the increase in availability is not worth the investment for a single year. Option A correctly reflects this calculation and conclusion.
Author: LeetQuiz Editorial Team
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To determine if increasing your application's availability target from 99.9% to 99.99% is financially justified for a single year, given a `2`,000 investment and current annual revenue of \`1`,000,000, what steps should you take?
A
Calculate the value of improved availability to be $900, and determine that the increase in availability is not worth the investment.
B
Calculate the value of improved availability to be $1,000, and determine that the increase in availability is not worth the investment.
C
Calculate the value of improved availability to be $1,000, and determine that the increase in availability is worth the investment.
D
Calculate the value of improved availability to be $9,000, and determine that the increase in availability is worth the investment.
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