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Management is sceptical regarding the budget request (€25,000) for the next testing project.

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Management is sceptical regarding the budget request (€25,000) for the next testing project. You are asked for a cost-benefit calculation. Based on historical data from several projects, you have the following numbers:

Average prevention cost per defect: €200

Average cost of detection per defect: €400

Average cost of internal failure: €150

Average cost of external failure: €2,500

Expected number of defects to be found in this project during testing: 50

What is the result for the expected cost-benefit calculation for the upcoming project?

A.

€62,500

B.

€72,500

C.

€87,500

D.

€92,500

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