NPV & IRR worksheet with answers

Free printable NPV & IRR worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________   Date: ____________

1.Easy
years01234−20 0007 0007 0007 0007 000

A project costs €20 000 today and returns €7 000 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 7 000CF2 = 7 000CF3 = 7 000CF4 = 7 000
NPV = €
2.Easy
years012345−30 0009 5008 5006 0007 5005 500

A project costs €30 000 today and returns €9 500, €8 500, €6 000, €7 500, €5 500 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −30 000CF1 = 9 500CF2 = 8 500CF3 = 6 000CF4 = 7 500CF5 = 5 500
PB = years
3.Medium
years01234−100 00025 00025 00025 00035 000

A machine costs €100 000 today. It generates €25 000 at the end of each year for 4 years and can then be sold for €10 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF = €25 000S = €10 000n = 4r = 8%
NPV = €
4.Medium
years0123−75 00020 00032 00031 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €20 000, €32 000, €31 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −75 000CF1 = 20 000CF2 = 32 000CF3 = 31 000
NPV = €
5.Hard
years0123…10−50 00010 00010 00010 00010 000

An investment of €50 000 returns €10 000 at the end of each year for 10 years. Find its internal rate of return IRR in percent.

C0 = €50 000CF = €10 000n = 10
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 500, €12 000, €6 000 at the end of years 1 to 3. Project B costs €32 000 and returns €8 500, €13 500, €17 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 500, 12 000, 6 000B: −32 000, 8 500, 13 500, 17 500
r* = %

Answer key

  1. 1. NPV = 3710 €
  2. 2. PB = 3.8 years
  3. 3. NPV = −9847 €
  4. 4. NPV = −7081 €
  5. 5. IRR = 15.1 %
  6. 6. r* = 8.412 %

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