If an incident is expected to happen every 3 months and the cost of recovering from a single incident is $1000, what is the annual loss of expectancy (ALE) for this incident? 2000 3000 333.33 4000 None of these

If an incident is expected to happen every 3 months and the cost of recovering from a single incident is $1000, what is the annual loss of expectancy (ALE) for this incident? 2000 3000 333.33 4000 None of these

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Our new computer system cost us $164,800. We will outgrow it in five years. When we sell it, we will…

A: A computer is considered an asset for a business since it adds economic value to the company's…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: A machine costs $10,000, has an estimated life of 10 years and a scrap value of $1500. Assuming no…

A: Annual sinking funds are created to accumulate money required in the future requirements of the…

Q: A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an…

A: The Payback period is among the of the techniques of capital budgeting that do not take into…

Q: This asset is similar across other asset replacement questions: An asset has a first cost of…

A: Present value=future value/(1+r)^n

Q: not use ai please

A: Step 1: Calculate the average book value of the asset:Average book value = (Initial cost + Salvage…

Q: Our new computer system cost us $114,400. We will outgrow it in five years. When we sell it, we will…

A: The after tax proceeds from the asset can be found by using following formula:The book value at the…

Q: A device is purchased for $30,000. It yields a $5,000 yearly net profit for first 4 years and then…

A: Given, price of device =$30,000

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Net Present Value (NPV) is the present value of cash inflows minus the initial investment. If NPV of…

Q: 11. We bought a machine and will make equal annual payments of $1,000 each year for 6 years. The…

A: The present value formula helps in determining the today’s value of money which is to be received or…

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of…

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?

Q: Which alternative in the table below should be selected when the MARR = 6% per year? The life of…

A: The IRR of a project refers to the measure of the project's profitability calculated by finding the…

Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when…

A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year P 80,000.00…

Q: Consider a machine that initially cost $6,000 and has these estimated annual expenses and market…

A: Data Given: Initial cost of Machine= $6000 MARR =9% Required:: Economic service life = ?

Q: Blossom, Inc. is considering purchasing equipment costing $90000 with a 6-year useful life. The…

A: PI is also known Profitability Index. It is a capital budgeting techniques which help in decision…

Q: cost of $100,000. Table Top wants to know how = cost in 5 years. Which table should Table Top use…

A: Present value is the amount of money that must be invested in the present to achive a future…

Q: Fs n were part of a N

A: Formula to calculate PV of cash flows is: PV = FV/(1+r)^n Formula to calculate NPV is: NPV = cash…

Q: An industrial engineer has estimated that a processing machine will need repairs in years two…

A: Equivalent Uniform Annual Cost refers to the cost incurred over the period of project which when…

Q: If a $10,000 investment earns a 4.3 percent annual return, what should its value be after 1 year?…

A: The future value of an investment is the sum total of the original investment and the total return…

Q: Our new computer system cost us $132,400. We will outgrow it in five years. When we sell it, we will…

A: CCA stands for Capital Cost Allowance and refers to the method of depreciation which is used for tax…

Question

If an incident is expected to happen every 3 months and the cost of recovering from
a single incident is $1000, what is the annual loss of expectancy (ALE) for this
incident?
2000
3000
333.33
4000
None of these

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

13- VMIC Corp. has asked you to look at the following data. The interest rate is 10%. 38 A Marginal Cost Data Year, n Existing Asset 1 $2000 2200 2 3 4 5 6 7 2300 2550 2900 3400 4000 EUAC if Kept n Years New Asset $6500 4200 3000 2650 2700 2800 3000 (a) What is the new asset's minimum cost life? (b) When, if at all, should we replace the existing asset with the new asset?
Our new computer system cost us $172,000. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 $ $ $ $ CCA Ending UCC $ $ $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds
S7.37 Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 12% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. MACHINE A MACHINE B $10,000 2,000 4,000 2,000 $20,000 Original cost Labor per year Maintenance per year Salvage value 4,000 1,000 7,000 Determine, via the present value method, which machine Tim should recommend.
Your company is considering purchasing an expensive plece of equipment. The manufacturer of the equipment offers a payment plan to pay $100,000 annually for 4 years. Assuming no other cash flow, the first payment is due at the end of the first year, and an interest rate of 6%, the minimum Present amount of money you will need is most nearly O $370,000 O $380.000 O 390.000 O 5400,000 O 5410.000 O S420.000
5
A three-year-old small crane is being considered for early replacement. Its current market value is $17,500. Estimated future market values and annual operating costs for the next five years are given in the table below. What is the economic life for this crane if the interest rate is 5.1% per year? Year 0 Market Value Annual Operating Cost $17,500 1 $15,110 $4,700 2 $12,930 $4,809 3 $10,110 $4,883 4 $7,400 $4,997 5 $- $5,095
Our new computer system cost us $121,600. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ Ending UCC $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $