A new water desalination technology promises to greatly improve the efficiency of desalination, in particular by using less energy, therefore offering significant savings on operating costs. However, the novel technology mentioned above is plagued by high capital costs, as its set up costs are much higher than conventional desalination technologies. These costs, generally incurred in the last month before plant operations start, might deter those industries that have low capital costs, from replacing their old desalination plants with the new one.

Which of the following, if true, provides the strongest support for a prediction that industries with capital costs might not adopt the new water desalination system?


A) Desalination has much higher operating costs than water purification

B) The proposed water desalination system is cheaper to install that than old desalinations plants, with a significant savings on labor costs

C) The desalination system was developed by a team of Israeli engineers, widely acknowledged to have groundbreaking technologies in the field

D) Companies with low operating costs are more sensitive towards increasing capital expenditures than companies that already have high capital costs

E) Large and small companies have similar economics in most industries

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