Answer: The single loss expectancy of the the shipping facility is $2,700,000.
Explanation: The total value of the facility is worth $3,000,000. Building and land inclusive.
The Building is worth 90% of $3,000,000 which is 0.9 × $3,000,000 = $2,700,000
while the land is worth 10% of $3,000,000 which is 0.1 × $3,000,000 = $300,000.
If any event of an avalanche, only the building is destroyed but the land remains.
If an avalanche happens and the building is destroyed, the single loss will be $2,700,000. Because the land still remains which is valuable.
