could someone help me!

[Ozlemg]

Companies considering new cost-cutting manufacturing processes often compare the projected results of making the investment against the alternative of not making the investment with costs, selling prices, and share of market remaining constant.
Which of the following, assuming that each is a realistic possibility, constitutes the most serious disadvantage for companies of using the method above for evaluating the financial benefit of new manufacturing processes?

-The costs of materials required by the new process might not be known with certainty.
-In several years interest rates might go down, reducing the interest costs of borrowing money to pay for the investment.
-Some cost-cutting processes might require such expensive investments that there would be no net gain for many years, until the investment was paid for by savings in the manufacturing process.
-Competitors that do invest in a new process might reduce their selling prices and thus take market share away from companies that do not.
-The period of year chosen for averaging out the cost of the investment might be somewhat longer or shorter, thus affecting the result.

OA : D

[Cobra]

Companies considering new cost-cutting manufacturing processes often compare the projected results of making the investment against the alternative of not making the investment with costs, selling prices, and share of market remaining constant.
Which of the following, assuming that each is a realistic possibility, constitutes the most serious disadvantage for companies of using the method above for evaluating the financial benefit of new manufacturing processes?

The question asks about most serious disadvantage that the companies using the method above might face. answer choice D points out that the companies who don't make investment might not only not earn any new profits from innovation but even their present sales may get dramatically reduced as rival companies who do make investments in new cost cutting technologies might achieve that desired innovation and thus start producing goods at cheaper price from existing market rates. This option presents a circumstance where a company gets a double blow . I will pick D as it looks most serious of all.

[GmatKiss]

Companies considering new cost-cutting manufacturing processes often compare the projected results of making the investment against the alternative of not making the investment with costs, selling prices, and share of market remaining constant.
Which of the following, assuming that each is a realistic possibility, constitutes the most serious disadvantage for companies of using the method above for evaluating the financial benefit of new manufacturing processes?

-The costs of materials required by the new process might not be known with certainty.
-In several years interest rates might go down, reducing the interest costs of borrowing money to pay for the investment.
-Some cost-cutting processes might require such expensive investments that there would be no net gain for many years, until the investment was paid for by savings in the manufacturing process.
-Competitors that do invest in a new process might reduce their selling prices and thus take market share away from companies that do not.
-The period of year chosen for averaging out the cost of the investment might be somewhat longer or shorter, thus affecting the result.

A. Very unlikely, Not a serious disadv
B. A disadvantage
C. Advantage
D. Serious disadvantage (loses both cost reduction and market share to competitors)
E. Irrelevant