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
years0123456−25 0006 5006 5006 5006 5006 5006 500

A project costs €25 000 today and returns €6 500 at the end of each year for 6 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €25 000CF = €6 500n = 6r = 12%
PI =
2.Easy
years0123−25 00011 00011 00011 000

A project costs €25 000 today and returns €11 000 at the end of each year for 3 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €25 000CF = €11 000n = 3r = 12%
PI =
3.Medium
years01234−60 00016 00026 00018 00023 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €16 000, €26 000, €18 000, €23 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −60 000CF1 = 16 000CF2 = 26 000CF3 = 18 000CF4 = 23 000
NPV = €
4.Medium
years01234−60 00026 00016 00025 00028 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €26 000, €16 000, €25 000, €28 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −60 000CF1 = 26 000CF2 = 16 000CF3 = 25 000CF4 = 28 000
NPV = €
5.Hard
years0123−10 0007 0007 5005 500

A project costs €10 000 and returns €7 000, €7 500, €5 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 000CF2 = 7 500CF3 = 5 500
IRR = %
6.Hard
years012345−25 0008 5008 5008 5008 5008 500

An investment of €25 000 returns €8 500 at the end of each year for 5 years. Find its internal rate of return IRR in percent.

C0 = €25 000CF = €8 500n = 5
IRR = %

Answer key

  1. 1. PI = 1.069
  2. 2. PI = 1.057
  3. 3. NPV = 11566 €
  4. 4. NPV = 18218 €
  5. 5. IRR = 46.69 %
  6. 6. IRR = 20.76 %

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