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
years0123−40 00017 00017 00017 000

A project costs €40 000 today and returns €17 000 at the end of each year for 3 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −40 000CF1 = 17 000CF2 = 17 000CF3 = 17 000
NPV = €
2.Easy
years01234? 6 0006 0005 00018 000

A machine is expected to save €6 000, €6 000, €5 000, €18 000 at the end of years 1 to 4, 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 = 6 000CF2 = 6 000CF3 = 5 000CF4 = 18 000
PV = €
3.Medium
years0123…9−250 00017 000+3%+3%…r = 9%, NPV = ?

A project costs €250 000 today. It generates €17 000 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 = €250 000CF1 = €17 000g = 3%r = 9%
NPV = €
4.Medium
years012345−80 00017 50017 50017 50017 50033 500

A machine costs €80 000 today. It generates €17 500 at the end of each year for 5 years and can then be sold for €16 000. The cost of capital is 10%. Find the net present value NPV.

C0 = €80 000CF = €17 500S = €16 000n = 5r = 10%
NPV = €
5.Hard
years0123−25 00016 0009 5009 000

A project costs €25 000 and returns €16 000, €9 500, €9 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 16 000CF2 = 9 500CF3 = 9 000
IRR = %
6.Hard
years0123−20 0007 5007 5007 500

An investment of €20 000 returns €7 500 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €20 000CF = €7 500n = 3
IRR = %

Answer key

  1. 1. NPV = 6295 €
  2. 2. PV = 26464 €
  3. 3. NPV = 33333 €
  4. 4. NPV = −3726 €
  5. 5. IRR = 20.4 %
  6. 6. IRR = 6.129 %

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