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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years0123456−40 00013 00013 00015 5007 0006 50012 500

A project costs €40 000 today and returns €13 000, €13 000, €15 500, €7 000, €6 500, €12 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 13 000CF2 = 13 000CF3 = 15 500CF4 = 7 000CF5 = 6 500CF6 = 12 500
PB = years
2.Easy
years01234? 25 0005 00020 0008 000

A machine is expected to save €25 000, €5 000, €20 000, €8 000 at the end of years 1 to 4, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 25 000CF2 = 5 000CF3 = 20 000CF4 = 8 000
PV = €
3.Medium
years0123…9−500 00044 000+4%+4%…r = 12%, NPV = ?

A project costs €500 000 today. It generates €44 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 12%. Find the net present value NPV.

C0 = €500 000CF1 = €44 000g = 4%r = 12%
NPV = €
4.Medium
years01234−45 00021 00019 00021 00022 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €21 000, €19 000, €21 000, €22 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −45 000CF1 = 21 000CF2 = 19 000CF3 = 21 000CF4 = 22 000
NPV = €
5.Hard
years0123456−50 0007 500+5%+5%+5%+5%+5%r = 10%, NPV = ?

A project costs €50 000 today. Its cash flow is €7 500 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 6. The cost of capital is 10%. Find the net present value NPV.

C0 = €50 000CF1 = €7 500g = 5%n = 6r = 10%
NPV = €
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 000, €12 000, €7 000 at the end of years 1 to 3. Project B costs €40 000 and returns €11 000, €16 000, €21 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 000, 12 000, 7 000B: −40 000, 11 000, 16 000, 21 500
r* = %

Answer key

  1. 1. PB = 2.903 years
  2. 2. PV = 51164 €
  3. 3. NPV = 50000 €
  4. 4. NPV = 28474 €
  5. 5. NPV = −13467 €
  6. 6. r* = 6.208 %

Full step-by-step solutions: practise this topic on examproblems.com.