Cost/benefit analysis is the final equation of risk analysis to assess the relative benefit of a counter-measure against the potential annual loss of a given asset exposed to a specific threat. true or false?

True

Explanation:

Risk analysis process implies analyzing potential issues that could negatively impact in the business or critical projects in order to help organizations avoid or mitigate those risks. Involves calculating the probability of something going wrong, and the consequences if it does.

d. More than $5,000,000 of external financing is needed

Explanation:

Missing word "Assume there is no increase in liabilities other than that which will occur with the external financing. A) No external financing will be needed. B) Less than $1,000,000 of external financing is needed. C) Between $1,000,000 and $5,000,000 of external financing is needed. D) More than $5,000,000 of external financing is needed."

Change in assets = $8,000,000

Net profit = $50,000,000 * 6% = $3,000,000      

Increase in liabilities = $0

External financing need = Change in Assets - Change in Current liabilities - Retained Earnings

External financing need = ($8,000,000 -- $0) - [$3,000,000*(1-30%)}

External financing need = $8,000,000 - $2,100,000

External financing need = $5,900,000