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In an effort to reduce heating costs, a university commissions a study on the benefits and drawbacks of switching from fuel oil to natural gas. The study found that although natural gas is cheaper per gallon, transporting it to the campus from the nearest shipping hub would be twenty percent more expensive than the fuel oil that is delivered from a nearby refinery.

The university would also have to consider the cost of retrofitting its fuel oil furnaces to run on natural gas.

If the university decided to go forward with the transition to natural gas, which of the following would most likely be true?

A

The savings on the cost of the natural gas would be more than the cost to retrofit the furnaces.

B

The savings for natural gas would be less than the cost to retrofit the furnaces.

C

The savings in the cost of the gas and retrofitting the furnaces would have to amount to at least twenty percent of the gas’s shipping costs.

D

The cost of the gas and retrofitting the furnaces would have to be at least twenty percent less than that of fuel oil.

E

The fuel-efficiency of natural gas would have to be twenty percent greater than that of fuel oil.

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