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
years0123−100 00056 00056 00056 000

A project costs €100 000 today and returns €56 000 at the end of each year for 3 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −100 000CF1 = 56 000CF2 = 56 000CF3 = 56 000
NPV = €
2.Easy
years0123456−20 0008 0005 5003 0005 0006 5006 000

A project costs €20 000 today and returns €8 000, €5 500, €3 000, €5 000, €6 500, €6 000 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −20 000CF1 = 8 000CF2 = 5 500CF3 = 3 000CF4 = 5 000CF5 = 6 500CF6 = 6 000
PB = years
3.Medium
years0123…9−200 00010 000+3%+3%…r = 9%, NPV = ?

A project costs €200 000 today. It generates €10 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €200 000CF1 = €10 000g = 3%r = 9%
NPV = €
4.Medium
years01234−20 0005 0005 0005 0006 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €5 000, €5 000, €5 000, €6 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −20 000CF1 = 5 000CF2 = 5 000CF3 = 5 000CF4 = 6 000
NPV = €
5.Hard
years0123−50 00027 50025 00025 000

A project costs €50 000 and returns €27 500, €25 000, €25 000 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 12%. Find the modified internal rate of return MIRR in percent.

r = 12%CF0 = −50 000CF1 = 27 500CF2 = 25 000CF3 = 25 000
MIRR = %
6.Hard
years0123456−50 0009 000+4%+4%+4%+4%+4%r = 12%, NPV = ?

A project costs €50 000 today. Its cash flow is €9 000 at the end of year 1 and grows by 4% per year until the last cash flow at the end of year 6. The cost of capital is 12%. Find the net present value NPV.

C0 = €50 000CF1 = €9 000g = 4%n = 6r = 12%
NPV = €

Answer key

  1. 1. NPV = 39264 €
  2. 2. PB = 3.7 years
  3. 3. NPV = −33333 €
  4. 4. NPV = −3468 €
  5. 5. MIRR = 20.51 %
  6. 6. NPV = −9618 €

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