If NPV > 0 → accept project (earns more than hurdle rate). If NPV < 0 → reject.
Each card features a question, key term, formula, or scenario on the front, and a detailed, exam-relevant answer on the back. Use these cards in 15-minute bursts to reinforce your weak areas and test your recall under exam conditions. Card 1 – Front Q: What is the formula for Simple Payback Period (SPP), and what is its primary limitation in energy project evaluation? Card 1 – Back A: SPP = Initial Investment / Annual Savings If NPV > 0 → accept project (earns
Note: May produce multiple values for non-conventional cash flows. Which ASHRAE Standard defines energy baseline and modeling for commercial buildings? Card 12 – Back A: ASHRAE Standard 90.1 (Energy Standard for Buildings Except Low-Rise Residential) — particularly Appendix G for Performance Rating Method. Use these cards in 15-minute bursts to reinforce
The effective annual return from the project’s cash flows. Compare to company’s hurdle rate (e.g., 12%). If IRR > hurdle rate → accept. Which ASHRAE Standard defines energy baseline and modeling
Isolated retrofit, stipulated assumption for unmeasured factors. Option B: All parameters measured. Card 8 – Front True or False: Power factor correction capacitors reduce kW demand charges. Card 8 – Back A: False. Capacitors reduce kvar , thus lowering kVA (apparent power), which may reduce kVA demand charges , but not kW demand. kW is real power, unchanged by capacitors.
= (200 × 0.75 × 0.746) / 0.90 = (111.9) / 0.90 =