Absolute Free AEE-CEM Exam Practice for Comprehensive Preparation 

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 high-pressure steam system passes 180°C condensate (saturated liquid) through a steam trap to an atmospherically vented condensate receiver tank. If the steam trap is working properly, how much of the condensate mass can be lost out the vent of the receiver tank in the form of flash steam? 

An energy-saving project saves $30,000 per year. The project life is 10 years and the company minimum annual rate of return (MARR) is 15%. How much can the project cost and still be cost effective?

A new lighting system costs $60,000. The new lighting system has a 15-year life and the minimum required rate of return (MARR) is 15%. How much must the new lighting system save to be life-cycle cost effective?