Should You Buy the System?
The system reduces the loss from unauthorized access to $5,000,000 for one year. Should you buy the system?
Assume three things in answering this question. (1) Your goal is to minimize the cost of crimes resulting from unauthorized access. Note: The costs consist of both the amount that ChoicePoint spends to stop the crime and the amount of loss that occurs after the expenditure. (2) There is no way for those individuals to protect themselves from such crimes. (3) The only relevant effect of implementing the system will be to reduce the loss from crimes.
You should buy the system only if it costs less than $3,000,000.