A project costs €100 000 today and returns €30 000 at the end of each year for 5 years. The required rate of return is 9%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €20 000 today and returns €8 500 at the end of each year for 3 years. The required rate of return is 10%. Find the profitability index PI.
An investment of €60 000 gives these cash flows at the end of years 1 to 3: €25 000, €17 000, €29 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.
An investment of €75 000 gives these cash flows at the end of years 1 to 4: €33 000, €23 000, €17 000, €37 000. The cost of capital is 9%. Find the net present value NPV.
A project costs €20 000 and returns €10 500, €13 000, €11 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
A project costs €50 000 and returns €35 000, €36 500, €33 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 16690 €
- 2. PI = 1.057
- 3. NPV = 1886 €
- 4. NPV = 13973 €
- 5. IRR = 32.71 %
- 6. IRR = 48.84 %
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