2nd pic is the answer of the above question

4. A business has an annual premium of $7050 for a fire insurance if no sprinkler system is installed. If a fire occurs, it is expected that the business will have unrecoverable losses of $375,000 without a sprinkler system. If a sprinkler system is installed, the annual premium will decrease to $2700 and the unrecoverable losses will be reduced to $187.500. Annual maintenance costs for a sprinkler system are 1% of the purchase price. Use a minimum rate of return of 10%, what is the maximum justifiable cost of a sprinkler system. Assume the sprinkler system will last 20 years with no salvage value. Also, in a given year, the probability of a fire is 0.01 4. $48,838