Exam CEM Topic 3 Question 101 Discussion

Actual exam question for AEE's CEM exam
Question #: 101
Topic #: 3
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.

Suggested Answer: D Vote an answer

by semerewolde12 at Jul 03, 2026, 12:16 PM

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