1. Kruger Industries owns a small office building worth $400,081}. Art Vandelay is the risk manager. Kruger faces the risk of fire which would completely destroy their building. The probability of a fire is known to be 3%. Kruger has a marginal tax rate of 40%. Kruger is considering the following risk management options to address the risk of fire to their building: :1] Retention :2] Full Insurance for a premium of $12,500 :3] Safety Program + Retention :4] Safety Program + Full Insurance [premium falls to $95130] The cost of the Safety Program is $2DDD. It has the impact of lowering the probability of a fire from 3% to 2%. However, if a fire does occur it is still a total loss