AEE Certified Energy Manager (CEM) CEM Question # 36 Topic 4 Discussion

AEE Certified Energy Manager (CEM) CEM Question # 36 Topic 4 Discussion

CEM Exam Topic 4 Question 36 Discussion:
Question #: 36
Topic #: 4

You can buy air compressor A for $15,000 or air compressor B for $6,000. Compressor A will cost $10,000 per year to operate. Compressor B will cost $11,500 per year to operate. If both air compressors have a 10-year life and your required return on investment is 12%, which air compressor has the lowest total life-cycle cost?


A.

Compressor A


B.

Compressor B


C.

Both air compressors have the same life-cycle cost


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