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
years012345−60 00013 00016 50020 50019 50023 000

A project costs €60 000 today and returns €13 000, €16 500, €20 500, €19 500, €23 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −60 000CF1 = 13 000CF2 = 16 500CF3 = 20 500CF4 = 19 500CF5 = 23 000
PB = years
2.Easy
years012345−40 00010 0007 0006 5009 50014 000

A project costs €40 000 today and returns €10 000, €7 000, €6 500, €9 500, €14 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 10 000CF2 = 7 000CF3 = 6 500CF4 = 9 500CF5 = 14 000
PB = years
3.Medium
years0123456−60 00016 00016 00016 00016 00016 00016 000

A project costs €60 000 today and returns €16 000 at the end of each year for 6 years. The cost of capital is 10%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 10%CF0 = −60 000CF1 = 16 000CF2 = 16 000CF3 = 16 000CF4 = 16 000CF5 = 16 000CF6 = 16 000
DPB = years
4.Medium
years0123−20 0008 0008 0008 000

An investment of €20 000 gives these cash flows at the end of years 1 to 3: €8 000, €8 000, €8 000. The cost of capital is 9%. Find the net present value NPV.

r = 9%CF0 = −20 000CF1 = 8 000CF2 = 8 000CF3 = 8 000
NPV = €
5.Hard
years01234−10 0003 5003 0003 0004 000

A project costs €10 000 and returns €3 500, €3 000, €3 000, €4 000 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 8%. Find the modified internal rate of return MIRR in percent.

r = 8%CF0 = −10 000CF1 = 3 500CF2 = 3 000CF3 = 3 000CF4 = 4 000
MIRR = %
6.Hard
years0123−20 00013 5009 0009 500

A project costs €20 000 and returns €13 500, €9 000, €9 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 13 500CF2 = 9 000CF3 = 9 500
IRR = %

Answer key

  1. 1. PB = 3.513 years
  2. 2. PB = 4.5 years
  3. 3. DPB = 4.934 years
  4. 4. NPV = 250.4 €
  5. 5. MIRR = 10.94 %
  6. 6. IRR = 30.13 %

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