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1. A facility owner is considering installing a new chiller. The installed project cost will be $300,000. The annual savings from the energy-saving project will be $45,000 for the 20-year life of the chiller. If an energy- service company requires a minimum 20% return on investment (pre-tax), will the energy-service company agree to finance this project?
A) Yes
B) No
2. 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
3. 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) $165,903
B) $188,343
C) $150,570
D) $201,123
E) $198,992
4. Which of the following is a closed-loop controller?
A) Accelerator pedal in an automobile
B) Manual dimmer for a light switch
C) Thermostat for an air conditioning unit
D) Time clock schedule controller
5. A 25-kW motor, at full load, drives a centrifugal fan that produces 160,000 liters per second (l/s) of ventilation air. If the fan speed is reduced to a flow rate of 150,000 l/s, what is the new load on the motor?
A) 25.0 kW
B) 20.6 kW
C) 24.2 kW
D) 15.2 kW
E) 30.3 kW
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: D |
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