A project costs €10 000 today and returns €4 000 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €30 000 today and returns €9 500, €10 000, €12 000, €10 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.
An investment of €30 000 gives these cash flows at the end of years 1 to 3: €10 000, €7 000, €8 000. The cost of capital is 8%. Find the net present value NPV.
An investment of €45 000 gives these cash flows at the end of years 1 to 4: €16 000, €14 000, €16 000, €13 000. The cost of capital is 8%. Find the net present value NPV.
A project costs €25 000 and returns €13 000, €10 000, €18 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
A project costs €25 000 and returns €18 500, €17 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 3549 €
- 2. PB = 2.875 years
- 3. NPV = −8389 €
- 4. NPV = 4074 €
- 5. IRR = 28.21 %
- 6. IRR = 28.48 %
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