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
years01234? 18 0006 00010 00015 000

A machine is expected to save €18 000, €6 000, €10 000, €15 000 at the end of years 1 to 4, after which it is worthless. The required return is 9%. What is the most the company should pay for the machine today? Find PV.

r = 9%CF1 = 18 000CF2 = 6 000CF3 = 10 000CF4 = 15 000
PV = €
2.Easy
years012345−50 00016 50016 50016 50016 50016 500

A project costs €50 000 today and returns €16 500 at the end of each year for 5 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −50 000CF1 = 16 500CF2 = 16 500CF3 = 16 500CF4 = 16 500CF5 = 16 500
NPV = €
3.Medium
years01234−60 00021 50021 50021 50021 500

A project costs €60 000 today and returns €21 500 at the end of each year for 4 years. The cost of capital is 12%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 12%CF0 = −60 000CF1 = 21 500CF2 = 21 500CF3 = 21 500CF4 = 21 500
DPB = years
4.Medium
years0123…9−250 00023 000+3%+3%…r = 10%, NPV = ?

A project costs €250 000 today. It generates €23 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 10%. Find the net present value NPV.

C0 = €250 000CF1 = €23 000g = 3%r = 10%
NPV = €
5.Hard
years01234−40 00012 00021 00021 00017 500

A project costs €40 000 and returns €12 000, €21 000, €21 000, €17 500 at the end of years 1 to 4. 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 = −40 000CF1 = 12 000CF2 = 21 000CF3 = 21 000CF4 = 17 500
MIRR = %
6.Hard
years012−10 0007 5006 000

A project costs €10 000 and returns €7 500, €6 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 500CF2 = 6 000
IRR = %

Answer key

  1. 1. PV = 39912 €
  2. 2. NPV = 5311 €
  3. 3. DPB = 3.612 years
  4. 4. NPV = 78571 €
  5. 5. MIRR = 20.46 %
  6. 6. IRR = 23.56 %

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