A project costs €80 000 today and returns €30 500 at the end of each year for 4 years. The required rate of return is 12%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €80 000 today and returns €37 000 at the end of each year for 3 years. The required rate of return is 15%. Find the net present value NPV.
An investment of €45 000 gives these cash flows at the end of years 1 to 4: €17 000, €20 000, €20 000, €17 000. The cost of capital is 15%. Find the net present value NPV.
A project costs €250 000 today. It generates €26 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 10%. Find the net present value NPV.
An investment of €40 000 returns €10 000 at the end of each year for 9 years. Find its internal rate of return IRR in percent.
An investment of €50 000 returns €9 500 at the end of each year for 6 years. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 12639 €
- 2. NPV = 4479 €
- 3. NPV = 7776 €
- 4. NPV = 75000 €
- 5. IRR = 20.24 %
- 6. IRR = 3.877 %
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