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
years0123? 8 00015 0005 000

A machine is expected to save €8 000, €15 000, €5 000 at the end of years 1 to 3, after which it is worthless. The required return is 10%. What is the most the company should pay for the machine today? Find PV.

r = 10%CF1 = 8 000CF2 = 15 000CF3 = 5 000
PV = €
2.Easy
years01234−80 00028 00028 00028 00028 000

A project costs €80 000 today and returns €28 000 at the end of each year for 4 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €80 000CF = €28 000n = 4r = 5%
PI =
3.Medium
years01234−30 00012 0009 00012 00010 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €12 000, €9 000, €12 000, €10 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −30 000CF1 = 12 000CF2 = 9 000CF3 = 12 000CF4 = 10 000
NPV = €
4.Medium
years01234567−40 0006 5006 5006 5006 5006 5006 50010 500

A machine costs €40 000 today. It generates €6 500 at the end of each year for 7 years and can then be sold for €4 000. The cost of capital is 6%. Find the net present value NPV.

C0 = €40 000CF = €6 500S = €4 000n = 7r = 6%
NPV = €
5.Hard
years012−20 0009 50014 500

A project costs €20 000 and returns €9 500, €14 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 9 500CF2 = 14 500
IRR = %
6.Hard
years0123−20 00010 0009 0008 000

A project costs €20 000 and returns €10 000, €9 000, €8 000 at the end of years 1 to 3. 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 = −20 000CF1 = 10 000CF2 = 9 000CF3 = 8 000
MIRR = %

Answer key

  1. 1. PV = 23426 €
  2. 2. PI = 1.241
  3. 3. NPV = 6500 €
  4. 4. NPV = −1054 €
  5. 5. IRR = 12.15 %
  6. 6. MIRR = 13.68 %

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