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# An electric-power company gained greater profits and

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Joined: 20 Sep 2006
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An electric-power company gained greater profits and [#permalink]

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21 Nov 2007, 16:59
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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 companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys 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.
[Reveal] Spoiler: OA

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Re: An electric-power company gained greater profits and [#permalink]

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21 Nov 2007, 17:10
saviop wrote:
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 companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys 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.

everything here is related to efficiency and profit i guess.

A. is def. a valid assumption
B. peak of the expenses is known to them so they think it can be compensated thus they can go ahead with the project
C. valid
D. no relation to profit
E. valid

D for me

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Re: An electric-power company gained greater profits and [#permalink]

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21 Nov 2007, 18:11
Ravshonbek wrote:
saviop wrote:
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 companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys 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.

everything here is related to efficiency and profit i guess.

A. is def. a valid assumption
B. peak of the expenses is known to them so they think it can be compensated thus they can go ahead with the project
C. valid
D. no relation to profit
E. valid

D for me

Thanks.
Missed the EXCEPT clause AGAIN

Kudos [?]: 20 [0], given: 0

Senior Manager
Joined: 19 Nov 2007
Posts: 459

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Re: An electric-power company gained greater profits and [#permalink]

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21 Nov 2007, 18:58
saviop wrote:
Ravshonbek wrote:
saviop wrote:
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 companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys 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.

everything here is related to efficiency and profit i guess.

A. is def. a valid assumption
B. peak of the expenses is known to them so they think it can be compensated thus they can go ahead with the project
C. valid
D. no relation to profit
E. valid

D for me

Thanks.
Missed the EXCEPT clause AGAIN

Kudos [?]: 218 [0], given: 4

Manager
Joined: 05 Jun 2012
Posts: 107

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Schools: IIMA
Re: An electric-power company gained greater profits and [#permalink]

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11 Jun 2014, 00:49
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If you look at beginning of sentence, "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. "

They have two concerns : 1. Greater profits 2. Efficiency

D is option which is talking about 'security' not related to profits or efficiency so D is correct option
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Re: An electric-power company gained greater profits and [#permalink]

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19 Jul 2016, 12:35
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: An electric-power company gained greater profits and   [#permalink] 19 Jul 2016, 12:35
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