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A Th e burner is already installed, so a competitor is not a
problem.
B Th e plant’s need for multiple burners should be an opportunity
for Hotco, not a disadvantage.
C If the old burner was very inefficient, the new burner should
save a great deal of money that
would ultimately go to Hotco.
D If demand decreases, less oil would need to be purchased, and
Hotco would get more money.
E Correct. Th is statement properly identifies a factor that would
constitute a disadvantage for the
plan: since the payment for the burner is based on savings in oil
purchases, any increases in the
price of oil will decrease savings and thus decrease payments to
Hotco.
Th e correct answer is E. |
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