Correct Answer: E
Explanation:
Option A : The burner is already installed, so a competitor is not a problem.
Option B : The plant's need for multiple burners should bean opportunity for Hotco, nota disadvantage.
Option C : If the old burner was very inefficient, the new burner should save a great deal of money that would ultimately go to Hotco.
Option D : If demand decreases, less oilwould need to be purchased, and Hotco would get more money.
Option E : Correct. This statement properly identifies a factor that would constitute a disadvantage for the plan since the payment for the burner is based on savings in oil purchases, any increases in the price of oil will decrease savings and thus decrease payments to Hotco.
The correct answer is E.