Hotco oil burners, designed to be used in asphalt plants, are so efficient that Hotco will sell one to the Clifton Asphalt plant for no payment other than the cost savings between the total amount the asphalt plant actually paid for oil using its former burner during the last two years and the total amount it will pay for oil using the Hotco burner during the next two years. On installation, the plant will make an estimated payment, which will be adjusted after two years to equal the actual cost savings. Which of the following, if it occurred, would constitute a disadvantage for Hotco of the plan described above?

Question

Examsnet · Accepted Answer

Correct Answer is : Very poor efficiency in the Clifton Asphalt plant’s old burner

GMAT Verbal Reasoning Practice Test 6