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Utility Corp, a company with a specific level of cash in its budget,

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Utility Corp, a company with a specific level of cash in its budget, [#permalink]

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New post 30 Mar 2018, 08:14
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E

Difficulty:

  15% (low)

Question Stats:

88% (01:12) correct 12% (02:38) wrong based on 33 sessions

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Utility Corp, a company with a specific level of cash in its budget, has been clearing uninhabited land near a national park for the construction of a coal plant. This practice continues even though greater annual profits can be made from a nuclear plant, which will not damage the nearby park, than from a coal plant, which will injure the habitat.

Which of the following, if true, most helps to explain why Utility Corp has been pursuing the less profitable of the two economic activities mentioned above?

A) The nearby park is rich with naturally occurring plant life that is important to the survival of various animal species.
B) Coal plant operations that are located in uninhabited areas are more profitable than coal plant operations that are located in inhabited areas.
C) In certain districts, profits made from coal plant operations are more heavily taxed than profits made from any other industry.
D) Some of the energy produced on land near an area such as a national park cannot be delivered cost-effectively to customers.
E) The amount of money required to build a nuclear plant is twice as high as the amount needed to begin a coal plant.

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[Reveal] Spoiler: OA

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Re: Utility Corp, a company with a specific level of cash in its budget, [#permalink]

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New post 30 Mar 2018, 08:55
Premise: fixed budget, company wants coal plant(damages park) and less profitable> nuclear plant profit up and no damage to park
Link: How do we know that the company even have the capacity to build a nuclear plant(even if it is more profitable)

Option E clearly suffices and bridges the link
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Re: Utility Corp, a company with a specific level of cash in its budget,   [#permalink] 30 Mar 2018, 08:55
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Utility Corp, a company with a specific level of cash in its budget,

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