AEE Certified Energy Manager (CEM) CEM Question # 24 Topic 3 Discussion

AEE Certified Energy Manager (CEM) CEM Question # 24 Topic 3 Discussion

CEM Exam Topic 3 Question 24 Discussion:
Question #: 24
Topic #: 3

An energy-saving project costs $540,000. The project will have maintenance costs of $25,000 per year. The energy savings from the project are $160,000 per year. The project has a life of 10 years with no salvage value. The minimum attractive rate of return (MARR) is 10%. Using end-of-year cash flows, calculate the net-present value (NPV) of the project.


A.

$154,657


B.

$289,575


C.

$311,556


D.

$456,254


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