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 $$6$ million dollars. Experts have told you that the chance that an avalanche will occur is one time every $12$ years.

If an avalanche hits, your building will be completely destroyed, and you will have to re$-$build on the existing land. Of the $6$ million, $75\%$ of the value is

within the building, $25\%$ 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$)$:

ABC$=$AxY $*QQW$

AxY$=5$

$QQW=10$

ABC$=50$

Questions

Question $1-$

What is the Asset Value $($AV$)?$

How did you determine the AV$?$

Question $2-$

What is the Exposure Factor $($EF$)?$

How did you determine the EF$?$

Question $3-$

What is the Annualized Rate of Occurrence $($ARO$)?$

How did you determine the ARO?

Question $4-$

What is the Single Loss Expectancy $($SLE$)?$

How did you determine the SLE?

Question $5-$

What is the Annualized Loss Expectancy $($ALE$)?$

How did you determine the ALE?

Question $6-$

You just got some new data $-$ the new information is that an avalanche will hit not one every $12$ years, but once every $7$ years.

With all other factors being the same, what is the NEW Annualized Loss Expectancy $($ALE$)?$

How did you determine the ALE?

Question $7-$

Due to building costs rising and land prices staying somewhat stable, you did a new calculation, and determined your business is now worth

$$6,350,000,$ and that the building portion is $80\%$ of the business. Based on this new info, what is the:

Single Loss Expectancy $($SLE$)?$

How did you determine the SLE?