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AEE Certified Energy Manager (CEM) Sample Questions:

1. A piece of equipment costs $250,000 to buy and install. The annual operating cost for the equipment is
$50,000 per year. The equipment will last 15 years. After 15 years, the equipment will have no net salvage value. The annual interest rate is 10%. What is the present value of the life-cycle cost to own and operate the equipment? Use end-of-year annual cash flow analysis.

A) $250,000
B) $630,300
C) $556,945
D) $756,113

2. What is the main reason for using instrumentation in energy audits?

A) Save energy
B) Validate utility energy bills
C) Support the local economy
D) Determine energy flows

3. A hot-water boiler has a cut-in set point of 65°C on the hot water supply temperature and a differential set point of 10°C. What is the hot-water supply temperature that causes the boiler to turn off?

A) 65°C
B) It depends on the return water temperature
C) 55°C
D) 75°C

4. Using an interest rate of 15%, an energy project has a net-present value (NPV) of $3,500. Which statement is true about the project's internal rate of return (IRR)?

A) IRR > 15%
B) IRR < 15%
C) IRR < 0%
D) IRR = 15%

5. Thermal scans of electrical equipment are useful for:

A) Locating a loose electrical connection
B) Reading current carrying capacity of installed conductors
C) Locating areas of high power factor
D) Measuring the load on a refrigerant system

Solutions: