Neco 2020 Data Processing Question 18

Practice objective / multiple choice question 18 from the 2020 Neco Data Processing examination.

Neco 2020 Data Processing Objective / Multiple Choice Hard Difficulty
Question 18 NECO • 2020 • DATA_PROCESSING • objective

A small business currently stores 2 TB of data on local hard drives. Each 1‑TB drive costs \(\text{₦}120,000\) and has a lifespan of 3 years; annual maintenance per drive is \(\text{₦}5,000\). Data volume grows by \(20\%\) each year. Alternatively, the business can use a cloud service that charges \(\text{₦}15,000\) per TB per month with no maintenance. Assuming the business must have enough storage for the data each year, which option (local drives or cloud service) has the lower total cost over the three‑year period? Show the total cost for each option.

Answer Options

A. Cloud storage is cheaper; total cost \\(\\text{₦}480,000\) (local would cost \\(\\text{₦}1,200,000\)).
Correct Answer B. Local storage is cheaper; total cost \(\text{₦}540,000\) (cloud would cost \(\text{₦}1,572,480\)).
C. Local storage is cheaper; total cost \\(\\text{₦}600,000\) (cloud would cost \\(\\text{₦}1,500,000\)).
D. Both options cost the same; total cost \\(\\text{₦}540,000\) each.
Correct Answer
B
Correct Option:
Local storage is cheaper; total cost \(\text{₦}540,000\) (cloud would cost \(\text{₦}1,572,480\)).

About This Question

This is Neco 2020 Data Processing Question 18. It is one of the objective questions from the 2020 Neco Data Processing examination.

Difficulty level: Hard .

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