Let:
\(X\) : Total amount the plant paid for oil using the older (former) burner for last two years(known).
\(Y\) : Total amount the plant will pay for oil using HOTCO burner for next two years(estimated ).
HOTCO estimated S.P. = \(X\) –Estimated(\(Y\) )
As oil price will increase the value of actual Y will also increase, so that will be a loss for HOTCO.
Please note that Option (c) Very poor efficiency in the Clifton Asphalt plant’s old burner; is not going to affect the outcome. We already know the
...
\(X\) : Total amount the plant paid for oil using the older (former) burner for last two years(known).
\(Y\) : Total amount the plant will pay for oil using HOTCO burner for next two years(estimated ).
HOTCO estimated S.P. = \(X\) –Estimated(\(Y\) )
As oil price will increase the value of actual Y will also increase, so that will be a loss for HOTCO.
Please note that Option (c) Very poor efficiency in the Clifton Asphalt plant’s old burner; is not going to affect the outcome. We already know the
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