1. Suppose XYZ Software Company has a new application development project with projected revenues of $1.2 million. Using the following table, calculate the ARO and ALE for each threat category the company faces for this project.

Threat CategoryCost per Incident (SLE)Frequency of OccurrenceProgrammer mistakes$5,0001 per weekLoss of intellectual property$75,0001 per yearSoftware piracy$5001 per weekTheft of information (hacker)$2,5001 per quarterTheft of information (employee)$5,0001 per 6 monthsWeb defacement$5001 per monthTheft of equipment$5,0001 per yearViruses, worms, Trojan horses$1,5001 per weekDenial-of-service attacks$2,5001 per quarterEarthquake$250,0001 per 20 yearsFlood$250,0001 per 10 yearsFire$500,0001 per 10 years