For next three questions, please refer to the following scenario:

Henry is the risk manager for Atwood Landing, a resort community in the midwestern United States. The resort's main data center is located in northern Indiana in an area that is prone to tornados. Henry recently undertook a replacement cost analysis and determined that rebuilding and reconfiguring the data center would cost $10 million.

Henry consulted with tornado experts, data center specialists, and structural engineers. Together, they determined that a typical tornado would cause approximately $5 millions of damage to the facility. The meteorologists determined that Atwood's facility lies in an area where they are likely to experience a tornado once every 200 years.