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An electric-power company gained greater profits and

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SVP
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An electric-power company gained greater profits and [#permalink] New post 22 Feb 2006, 07:20
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A
B
C
D
E

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0% (00:00) correct 100% (01:10) wrong based on 2 sessions
An electric-power company gained greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. To continue these financial trends, the company planned to replace an old plant by a plant with triple the capacity of its largest plant.

The company’s plan as described above assumed each of the following EXCEPT:

(A) Demand for electricity within the company’s area of service would increase in the future.
(B) Expenses would not rise beyond the level that could be compensated for by efficiency or volume of operation, or both.
(C) The planned plant would be sufficiently reliable in service to contribute a net financial benefit to the company as a whole.
(D) Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.
(E) The tripling of capacity would not result in insuperable technological obstacles to efficiency.
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 [#permalink] New post 22 Feb 2006, 08:33
We know nothing about safety issues, I choose D
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 [#permalink] New post 22 Feb 2006, 18:14
I too choose (D). If we negate any of the other answer choices, company's strategy to gain more profit by decreasing cost and increasing capacity will fall apart.
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 [#permalink] New post 22 Feb 2006, 20:49
D for me as well. 'Safety issues' are not directly acting as an assumption.
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 [#permalink] New post 22 Feb 2006, 22:54
D

I think its b/w C and D.

But this must be D.

C atleast talk about finance but D talks about something (safety) never touched in the argument.
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SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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 [#permalink] New post 23 Feb 2006, 05:47
Yup, the OA is "D"
  [#permalink] 23 Feb 2006, 05:47
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