Suppose XYZ Software Company has a new application development project, with projected revenues of $1,200,000. Using the following table, calculate the ARO and ALE for each threat category that XYZ Software Company faces for this project.

XYZ Software Company, major threat categories for new applications development	Cost per Incident	Frequency of Occurrence	SLE	ARO	ALE
Programmer mistakes	$8,000	1 per week
Loss of intellectual property	$75,000	1 per year
Software piracy	$500	1 per week
Theft of information (hacker)	$2,500	1 per quarter
Theft of information (employee)	$5,000	1 per 6 months
Web defacement	$500	1 per month
Theft of equipment	$5,000	1 per year
Virus, worms, Trojan horses	$1,500	1 per week
Denial-of-service attacks	$2,500	1 per quarter
Earthquake	$300,000	1 per 20 years
Flood	$250,000	1 per 10 years
Fire	$500,000	1 per 10 years