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

2. Which problems can be caused by poor power quality?

A) Equipment overheating
B) Induction motors running backwards
C) All of the above
D) Answers B and C
E) Circuit breakers tripping

3. Which motor parameter is the most difficult to measure with precision?

A) Operating load factor
B) Input power
C) Alternating current (AC) frequency
D) Operating (rotating) speed
E) Output power capacity

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 < 15%
D) IRR < 0%

5. The International Performance Measurement and Verification Protocol (IPMVP) has how many categories (method options) to determine the performance of an energy- or water-consuming system?

A) 2 Options
B) 5 Options
C) 6 Options
D) 3 Options
E) 4 Options

Solutions: