Free GMAT Practice Question

Question 1 of 1
ID: GMAT-VR-CR-026
Section: Verbal Reasoning - Critical Reasoning (CR)
Topic: Find the Assumption
Difficulty level: Medium

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The town of Meridale replaces each of its thirty delivery vans after nine years of service. An electric van costs 12,000 dollars more to buy than the diesel van it would replace, but costs 2,000 dollars less each year to fuel and maintain. The town's finance officer concludes that replacing the fleet with electric vans, as each diesel van comes due for replacement, will save the town money over the vans' service lives.

The finance officer's conclusion depends on which of the following assumptions?

AApart from purchase and running costs, an electric van will not cost over 6,000 dollars more than a diesel van in nine years.

BIn each of the nine years, an electric van will cost at least 2,000 dollars less to fuel and maintain than a diesel van would.

CThe town could not save more than 6,000 dollars per van by keeping its diesel vans in service for longer than nine years.

DWithin nine years the purchase price of an electric van will fall below the purchase price of a comparable diesel van.

EMost towns the size of Meridale have already replaced at least half of their diesel vans with electric ones.

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