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FiberOptics

by himu » Mon Oct 29, 2012 9:10 pm
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?

If they wait longer than one year, the price of fiber optic cabling may increase even more.

If they choose to have the rewiring done now, a local contractor will discount any future purchases of fiber optic cables.

Over a third of the headquarter's office space will be sold off in the next year.

Production costs for fiber optic cables are expected to drop in about 18 months.

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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by anuprajan5 » Mon Oct 29, 2012 9:55 pm
The answer is C as that is the only conclusive option

Option D and E talks about expectations, which may or may not come true and it still could be that the cost will increase because the supplier wants to increase his margins.
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by himu » Mon Oct 29, 2012 10:38 pm
Yes u r right yet again !

D is out =18 mnths..
but can u pls help me explain why not E = A new technique= is it out of scope ?
If a A new technique which is **more cost-effective and of better quality than fiber optic** cabling is expected to be on the market in about one year then waiting is justified.

PLs let me know your thoughts on this.....

Cheers,
~Himu.
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by anuprajan5 » Mon Oct 29, 2012 11:09 pm
himu,

It is an expectation. It is not conclusive evidence that waiting for a year is justified and again - if you look at the argument, it states that the cost will almost certainly rise. If the technique is cost effective to produce, it need not confirm that the buyer (the office) will gain from the cost effective process. Maybe the supplier will increase his margin.
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by himu » Mon Oct 29, 2012 11:27 pm
I am still not fully convinced :(

my negation to "Over a third of the headquarter's office space will be sold off in the next year. " was that even though third of the headquarter's office space will be sold off- they will still need the fiber optics anyways.
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by anuprajan5 » Tue Oct 30, 2012 12:53 am
Negate - If they don't sell the space then it will be worth the wait. No. If you negate the conclusion it destroys the argument that it is worth the wait.
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by kunalkulkarni » Tue Oct 30, 2012 10:47 am
it should be A
This is the only option that strengthens the decision to do the wiring now, rather than after a year.
Last edited by kunalkulkarni on Tue Oct 30, 2012 10:51 am, edited 1 time in total.
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by kunalkulkarni » Tue Oct 30, 2012 10:50 am
I dont think C should be correct!
if thats the case, they would do the cabling after a year for only the remainder 2/3 sections - which would be far more cost effective than doing it now!
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by sathishkumarjva9888 » Fri Nov 30, 2012 12:38 am
Question states - strengthen the owners decision - wait a year to rewire the headquarters with fiber optic cabling

Only Answer C says why it is cost efficient to wait 1 year and rewire with the same fiber optic cable.

E - talks about an alternative but irrespective of the presence of alternative, owners are planning to rewire with fiber optic cable.
Hence E is wrong.

Regards,
Sathish
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