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AllOnline Company is an e-business providing goods and services online to their customers. Their web-portal generates about $10000 in sales per each hour. The CIO

AllOnline Company is an e-business providing goods and services online to their customers. Their web-portal generates about $10000 in sales per each hour. The CIO of AllOnline has estimated that if the system were to fail, the average downtime would be about 2 hours per incident. It is anticipated (assume with 100% annual probability) that AllOnline will likely experience 4 downtime incidents in a given year due to internal computer system problems.

Question: A preventative control would be purchased to maintain more redundant computers and communication lines where possible, at an annualized cost of $5,000, which would reduce the expected downtime to 1 hour per incident (from 2) . What would the dollar amount of AllOnlines current residual expected risk at this point be? (note: when entering the resulting number below, please do not use any separators (, or .), just enter the digits and only positive numbers).

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