Answered step by step
Verified Expert Solution
Question
1 Approved Answer
GIVEN You have a business that is in Colorado, and there is a chance that if an avalanche happens, the business will be impacted by
GIVEN
You have a business that is in Colorado, and there is a chance that if an avalanche happens, the business will be impacted by it Your business facility is
worth $ million dollars. Experts have told you that the chance that an avalanche will occur is one time every years.
If an avalanche hits, your building will be completely destroyed, and you will have to rebuild on the existing land. Of the million, of the value is
within the building, is the value of the land of course the land does not lose value when an avalanche hits
Based on the information provided, answer the below questions. When there is a formula required, please show the formula you will use, the values for
each variable, and the result. For example, if I had a formula example fake formula:
ABCAxY
AxY
ABC
Questions
Question
What is the Asset Value AV
How did you determine the AV
Question
What is the Exposure Factor EF
How did you determine the EF
Question
What is the Annualized Rate of Occurrence ARO
How did you determine the ARO?
Question
What is the Single Loss Expectancy SLE
How did you determine the SLE?
Question
What is the Annualized Loss Expectancy ALE
How did you determine the ALE?
Question
You just got some new data the new information is that an avalanche will hit not one every years, but once every years.
With all other factors being the same, what is the NEW Annualized Loss Expectancy ALE
How did you determine the ALE?
Question
Due to building costs rising and land prices staying somewhat stable, you did a new calculation, and determined your business is now worth
$ and that the building portion is of the business. Based on this new info, what is the:
Single Loss Expectancy SLE
How did you determine the SLE?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started