A cloud service provider operates a data center that, if destroyed, would cost $20 million to rebuild. It is located in a flood zone and experts determined that a typical flood would cause about $4 million worth of damage to the data center. They also determined that a flood is likely to occur every 50 years. Based on these facts:
1. What is the exposure factor for the effect of a flood on the data center?
2. What is the annualized rate of occurrence of a flood at the data center?
3. What is the annualized loss expectancy of a flood at the data center?
Write your answer, showing all calculations and explanations.