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The owners of a business have decided to rewire the telecommunication

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The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 28 May 2017, 00:17
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The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more.
(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.
(C) Over a third of the headquarter’s office space will be sold off in the next year.
(D) Production costs for fiber optic cables are expected to drop in about 18 months.
(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.

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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 30 May 2017, 03:46
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They need rewring but owners are saying lets wait for another year despite the fact the price will increase.

Obviously, if they are saying so, they must be looking at some profits and Zero losses.

The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more. We are concerned for one year. What would happen after that is OFS.

(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables. --> Then why one year wait?

(C) Over a third of the headquarter’s office space will be sold off in the next year. --> Ok, so they are going to sell some of its area. Why to do rewiring of that. Let's save that money and use for increased price.

(D) Production costs for fiber optic cables are expected to drop in about 18 months. --> Overall price is going to increase as per the fact given. Hence, we cannot break the fact.

(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year. --> Tempting but they want to use fiber optic cabling. How can we say they are planning to do so with some other cable. Hence, incorrect.
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 30 May 2017, 07:17
No way that's a gmat question. Gmat questions focus many times on switching from A to B, which is more efficient.
What do they want to do? Rewire the telecommunication lines. What do they care about? cost.
So if a better and cheaper alternative (answer E) is expected to be available it does strengthen their decision to wait .
C sounds correct as well.

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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 20 Sep 2017, 06:33
abhimahna wrote:
They need rewring but owners are saying lets wait for another year despite the fact the price will increase.

Obviously, if they are saying so, they must be looking at some profits and Zero losses.

The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more. We are concerned for one year. What would happen after that is OFS.

(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables. --> Then why one year wait?

(C) Over a third of the headquarter’s office space will be sold off in the next year. --> Ok, so they are going to sell some of its area. Why to do rewiring of that. Let's save that money and use for increased price.

(D) Production costs for fiber optic cables are expected to drop in about 18 months. --> Overall price is going to increase as per the fact given. Hence, we cannot break the fact.

(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year. --> Tempting but they want to use fiber optic cabling. How can we say they are planning to do so with some other cable. Hence, incorrect.




=>>>>>>>>>>>>>>>>>>>>>>>>>>>>

They would like to use fiber optic cabling, but are concerned about the cost

they would like to use not necessarily implies that they want to use,
secondly they are concerned about cost => and option E is giving cheap alternative.
A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.

so waiting for 1 year is most strongly supported by this option i guess...??????????

Can you explain the problem in my reasoning -> if it were mentioned in stem that manager will definitely like to use fiber optics ,then i would have chosen option C => can u explain the problem in my reasoning?
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 20 Sep 2017, 09:14
The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more.
[Out of Scope: We are not concerned with the price after more than one year.]

(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.
[This does not help in answering why we should wait for a year, instead this could be seen as a weakener - if they want discount in future, they should do it now.]

(C) Over a third of the headquarter’s office space will be sold off in the next year.
[This is the correct answer - If they do it now, then they will be wasting money on the part of the office that is being sold of next year. Hence, better to wait and save on cost on that front too!]

(D) Production costs for fiber optic cables are expected to drop in about 18 months.
[But that does not mean that the buying cost will also decreases - Hence this cant be the answer.]

(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.
[Out of Scope: Though a lot of people have marked this as the answer, this cannot be correct, because the question specifically asks us to find the benefit of rewiring with fiber optic.]

Hence correct answer is C.
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 20 Sep 2017, 10:39
Squib17 wrote:
The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more.
[Out of Scope: We are not concerned with the price after more than one year.]

(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.
[This does not help in answering why we should wait for a year, instead this could be seen as a weakener - if they want discount in future, they should do it now.]

(C) Over a third of the headquarter’s office space will be sold off in the next year.
[This is the correct answer - If they do it now, then they will be wasting money on the part of the office that is being sold of next year. Hence, better to wait and save on cost on that front too!]

(D) Production costs for fiber optic cables are expected to drop in about 18 months.
[But that does not mean that the buying cost will also decreases - Hence this cant be the answer.]

(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.
[Out of Scope: Though a lot of people have marked this as the answer, this cannot be correct, because the question specifically asks us to find the benefit of rewiring with fiber optic.]

Hence correct answer is C.




They would like to use fiber optic cabling, but are concerned about the cost

they would like to use not necessarily implies that they want to use,
secondly they are concerned about cost => and option E is giving cheap alternative.
A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.

so waiting for 1 year is most strongly supported by this option i guess...??????????

Can you explain the problem in my reasoning -> if it were mentioned in stem that manager will definitely like to use fiber optics ,then i would have chosen option C => can u explain the problem in my reasoning?
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 20 Sep 2017, 11:26
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sahilvijay wrote:
Squib17 wrote:
The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more.
[Out of Scope: We are not concerned with the price after more than one year.]

(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.
[This does not help in answering why we should wait for a year, instead this could be seen as a weakener - if they want discount in future, they should do it now.]

(C) Over a third of the headquarter’s office space will be sold off in the next year.
[This is the correct answer - If they do it now, then they will be wasting money on the part of the office that is being sold of next year. Hence, better to wait and save on cost on that front too!]

(D) Production costs for fiber optic cables are expected to drop in about 18 months.
[But that does not mean that the buying cost will also decreases - Hence this cant be the answer.]

(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.
[Out of Scope: Though a lot of people have marked this as the answer, this cannot be correct, because the question specifically asks us to find the benefit of rewiring with fiber optic.]

Hence correct answer is C.




They would like to use fiber optic cabling, but are concerned about the cost

they would like to use not necessarily implies that they want to use,
secondly they are concerned about cost => and option E is giving cheap alternative.
A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.

so waiting for 1 year is most strongly supported by this option i guess...??????????

Can you explain the problem in my reasoning -> if it were mentioned in stem that manager will definitely like to use fiber optics ,then i would have chosen option C => can u explain the problem in my reasoning?


I can give you two reasons why option E cannot be correct -

1. Look at the question stem - It specifically asks us
"Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?"

So the question is itself asking us to find a reason to wait for a year to rewire " with fiber optic cable"

So giving a reason that another cheaper alternative can be used is Out of Scope, as we have to find a reason to use fiber optic!

2.
Look at the language of option E.

A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.

This does not necessarily mean that next year this will definitely come, so if they wait for a year for this alternative and it does not launch in the market in a year "as expected", then waiting for the alternative would be a waste!

Hence this option does not qualify as a strengthener!


While in case of Option C - Over a third of the headquarter’s office space will be sold off in the next year.

We know for sure that 1/3rd or more will be sold off, thus rewiring work would be less and hence the effective cost would be less.


I hope the above explanation helps. :)


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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 29 May 2018, 22:22
hazelnut wrote:
The owners of a business have decided to rewire the telecommunication lines throughout their headquarters. They would like to use fiber optic cabling, but are concerned about the cost. If they wait one year, the cost of a foot of fiber optic cabling will almost certainly increase by about 20 percent.

Which of the following would most strengthen the decision by the owners to wait a year to rewire the headquarters with fiber optic cabling?

(A) If they wait longer than one year, the price of fiber optic cabling may increase even more.
(B) If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.
(C) Over a third of the headquarter’s office space will be sold off in the next year.
(D) Production costs for fiber optic cables are expected to drop in about 18 months.
(E) A new technique that is more cost-effective and of better quality than fiber optic cabling is expected to be on the market in about one year.


VERITAS PREP OFFICIAL SOLUTION:



Correct Answer: C

We need to explain why, despite the rising costs, the business should wait. According to choice C, if they do wait, they will not have to rewire over a third of their current space, thus saving them money, despite the 20% rise in the cost of the cable. Choice A doesn't explain why the owners shouldn't rewire now. Choice B supports not waiting. Choice D states that production costs are expected to drop, but they may not, making this answer incorrect. Choice E is irrelevant because we're trying to support the use of fiber optic cabling.
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 30 May 2018, 01:36
Having read the explanation, I'm still not convinced about the option C being correct. I mean, I don't see a consistent logic behind this in general. Yes, if 1/3 of the area is sold next year, then the company can save some money on rewiring less. On the other hand, I can assume that rewiring the whole current area now will make it possible to sell 1/3 of the area for a higher price. Why, you may ask. Well, because it's been recently rewired, and that's why the new owner won't have to waste his time on rewiring the area by himself.
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Re: The owners of a business have decided to rewire the telecommunication  [#permalink]

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New post 31 May 2018, 00:55
Krotishka1 wrote:
Having read the explanation, I'm still not convinced about the option C being correct. I mean, I don't see a consistent logic behind this in general. Yes, if 1/3 of the area is sold next year, then the company can save some money on rewiring less. On the other hand, I can assume that rewiring the whole current area now will make it possible to sell 1/3 of the area for a higher price. Why, you may ask. Well, because it's been recently rewired, and that's why the new owner won't have to waste his time on rewiring the area by himself.


Hey Krotishka1 ,

I am happy to help :)

The highlighted line is an extra assumption you are making. What is they don't like Fiber rewiring at all?

Remember: Assuming outside information is not allowed on GMAT.

Now, to explain how C is correct.

The argument said: Let's wait for an year to save some cost despite the fact that there is going to be an increase in 20% cost of the fiber cable.

Now, let's say today the cost is $100 for an area of 100 sq ft. ==> Cost is $1 per sq ft.

Now, the argument is asking to wait for an year.

If we wait, the new cost will be $1.2 per sq ft.

We need to strengthen this by saying despite the increase in the cost per sq ft, we are able to reduce the overall cost.

How can this happen? When the overall area is less than 100 now. This is what option C did. It says the new area is 66.66 q ft. So, if you multiply 66.66 sq ft with 1.2 , you will get a value less than 100. Hence, the overall cost is reduced.

Does that make sense?
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Re: The owners of a business have decided to rewire the telecommunication &nbs [#permalink] 31 May 2018, 00:55
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