CR5

I agree with Barney and just wanted to add that the important point not to miss here in the conclusion is that the company makes this plan in order to "maximize" profits. But what if they could maximize profits actually by using the space for it already is, without investing more?

The answer to question in answer B will help determine exactly that.

i narrowed it to B and E.

ended up picking (E).

E is a tricky Trap.

BarneyStinson`s method of solving the best way to attack these type of questions it will help u save ur time too...

B. same reason as above.

Thanks for the hint and +1 to you

B is the only option that the Real Estate developers have to be considered about.

A - The argument does not consider the local population growth- This is irrelevant
B - If the demand for office spaces (consequently the price) of per Sq foot area of office space is > than per sq foot area of a hotel room then clearly the Real estate developers would have made a wrong choice if they convert office space to hotel rooms.
C - The Estate developers need not be concerned with other travel related services, because they are not providing this service, hence won't affect their balance sheet.
D - Another irrelevant option.
E - If we observe the stimulus carefully the question talks only about hotel rooms. The stimulus does not provide any information about a possibility of distinction between hotels and office spaces converted to hotels. We can safely eliminate this choice.

LM,

Please select the tag (Argument Evaluation) and source of question so that the question can be categorised correctly.

I would go for B

If in the future the demand of offices is high then the manager should keep the office building. If it is not then he should change them to hotel rooms.