It is currently 23 Nov 2017, 05:57

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

V04-37

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42326

Kudos [?]: 133105 [0], given: 12410

V04-37 [#permalink]

Show Tags

New post 16 Sep 2014, 02:55
Expert's post
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

68% (01:08) correct 32% (01:12) wrong based on 53 sessions

HideShow timer Statistics

Corporate Financial Officer: The proposal for our firm’s new office building is unnecessarily extravagant, overly spacious, and ridiculously expensive. The absolute maximum budget for this project is $9 million.

Building Contractor: Our architects have redrawn the blueprints to remove the atrium and sculpture garden, and our landscape artists have reduced the complexity of the surrounding gardens. We will now be able to complete the project at one-tenth the original estimated cost.

Which of the following, if true, most undermines the soundness of the contractor’s proposal to complete the project as per the corporate financial officer's recommendation?


A. The original estimated cost of the project was $100 million.
B. The contracting firm was originally hired based on the originality of its atrium design.
C. Corporate officers have already paid a deposit of $2 million.
D. The firm expects to hire 100 new employees by the time the building project is completed.
E. Architects working on the revised plans did not discard all expensive elements.
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 133105 [0], given: 12410

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42326

Kudos [?]: 133105 [0], given: 12410

Re V04-37 [#permalink]

Show Tags

New post 16 Sep 2014, 02:55
Official Solution:


Corporate Financial Officer: The proposal for our firm’s new office building is unnecessarily extravagant, overly spacious, and ridiculously expensive. The absolute maximum budget for this project is $9 million.

Building Contractor: Our architects have redrawn the blueprints to remove the atrium and sculpture garden, and our landscape artists have reduced the complexity of the surrounding gardens. We will now be able to complete the project at one-tenth the original estimated cost.

Which of the following, if true, most undermines the soundness of the contractor’s proposal to complete the project as per the corporate financial officer's recommendation?


A. The original estimated cost of the project was $100 million.
B. The contracting firm was originally hired based on the originality of its atrium design.
C. Corporate officers have already paid a deposit of $2 million.
D. The firm expects to hire 100 new employees by the time the building project is completed.
E. Architects working on the revised plans did not discard all expensive elements.


Situation:A building contractor offers revised blueprints to a client who claims the original plans were too expensive.

Reasoning: Which is the most serious flaw in the contractor’s proposal? The main concern of the financial officer is that the plans are larger, and therefore more expensive, than his firm can afford. Because the financial officer sets the maximum budget at $9 million, any evidence that the contractor’s new plans will be more expensive than this figure will greatly undermine the soundness of his proposal.
  1. If the original cost of the project was $100 million, then one-tenth of this cost will be $10 million, which is $1 million more than the company can afford.
  2. The elimination of the atrium does not undermine the soundness of the contractor’s plan, no matter if that design was originally appealing to the corporate officers.
  3. The amount of the deposit has no bearing on the final total cost.
  4. This option is tempting because it makes it seem as if the firm will need a larger building, but it actually has no bearing on the soundness of the contractor’s plan.
  5. The corporate officer did not ask that all expensive elements be discarded, but only that the project cost no more than $9 million.

Answer: A
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 133105 [0], given: 12410

Intern
Intern
avatar
Joined: 21 Jun 2016
Posts: 1

Kudos [?]: [0], given: 6

Re: V04-37 [#permalink]

Show Tags

New post 09 Sep 2016, 18:36
I did not understand the explanation here. Could someone please explain me.

I chose E because we have to find the flaw in contractor's reasoning. So If contractor is already using equipment's present over there then the budget said by him is more than what he is asking.

Thanks for your help.

Kudos [?]: [0], given: 6

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3521 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V04-37 [#permalink]

Show Tags

New post 10 Sep 2016, 07:30
kavitaa wrote:
I did not understand the explanation here. Could someone please explain me.

I chose E because we have to find the flaw in contractor's reasoning. So If contractor is already using equipment's present over there then the budget said by him is more than what he is asking.

Thanks for your help.


Thank you for pointing out - the question was not properly framed and has been now modified.

Kudos [?]: 3521 [0], given: 22

Intern
Intern
avatar
B
Joined: 06 Jun 2017
Posts: 15

Kudos [?]: 0 [0], given: 53

Location: India
Schools: Insead Sept '17
GMAT 1: 610 Q49 V25
GPA: 3.7
CAT Tests
Re: V04-37 [#permalink]

Show Tags

New post 22 Oct 2017, 04:21
Once again - I feel its a poor quality question. What if the contractor is saying that ITS IMPOSSIBLE to do it below $10m? He could be saying that " hey ! this is the least that I can work on"" that does not undermine his argument.

If they selected them cos they designed the atrium better than others - now they are not gonna build the atrium.. then it would make the company wanna consider other options . Once again - I not able to understand how A is the answer.

Ashwin

Kudos [?]: 0 [0], given: 53

Manager
Manager
avatar
B
Joined: 23 Jan 2017
Posts: 56

Kudos [?]: 0 [0], given: 8

CAT Tests
Re: V04-37 [#permalink]

Show Tags

New post 23 Oct 2017, 19:02
What the contractor may say is not important here. CFO recommends $9M as the total budget. Contractor makes some changes in the plan to reduce cost and proposes $10M, which is still outside the CFO's recommended budget. THIS (i.e. the underlined part) undermines the soundness of the contractor's proposal to complete the project as per CFO's recommendation... because he is basically not able to meet the recommended budget.

Hope this helps!

Kudos [?]: 0 [0], given: 8

Re: V04-37   [#permalink] 23 Oct 2017, 19:02
Display posts from previous: Sort by

V04-37

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: chetan2u, Bunuel



GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.