Note: For CEM exam, know how to compare NPV of two mutually exclusive projects. What is the primary purpose of a Measurement & Verification (M&V) Plan (IPMVP Option A or B)? Card 7 – Back A: To quantify actual energy savings from an ECM (Energy Conservation Measure) by comparing measured post-retrofit energy use to a baseline adjusted for relevant variables (weather, occupancy, production).
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. Note: For CEM exam, know how to compare
The effective annual return from the project’s cash flows. Compare to company’s hurdle rate (e.g., 12%). If IRR > hurdle rate → accept. Note: May produce multiple values for non-conventional cash