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
years0123456−50 00019 50012 50015 50018 00015 00012 000

A project costs €50 000 today and returns €19 500, €12 500, €15 500, €18 000, €15 000, €12 000 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 19 500CF2 = 12 500CF3 = 15 500CF4 = 18 000CF5 = 15 000CF6 = 12 000
PB = years
2.Easy
years01234−60 00020 00018 00010 00014 500

A project costs €60 000 today and returns €20 000, €18 000, €10 000, €14 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −60 000CF1 = 20 000CF2 = 18 000CF3 = 10 000CF4 = 14 500
PB = years
3.Medium
years012345€80 000€1 000€1 000€1 000€1 000€1 000r = 8%, EAC = ?

A machine costs €80 000 today, lasts 5 years and costs €1 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €80 000M = €1 000n = 5r = 8%
EAC = €
4.Medium
years0123456−60 00016 50016 50016 50016 50016 50016 500

A project costs €60 000 today and returns €16 500 at the end of each year for 6 years. The cost of capital is 6%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 6%CF0 = −60 000CF1 = 16 500CF2 = 16 500CF3 = 16 500CF4 = 16 500CF5 = 16 500CF6 = 16 500
DPB = years
5.Hard
years0123−20 00013 50012 50012 500

A project costs €20 000 and returns €13 500, €12 500, €12 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 13 500CF2 = 12 500CF3 = 12 500
IRR = %
6.Hard
years01234−200 00060 000+5%+5%+5%r = 12%, NPV = ?

A project costs €200 000 today. Its cash flow is €60 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 4. The cost of capital is 12%. Find the net present value NPV.

C0 = €200 000CF1 = €60 000g = 5%n = 4r = 12%
NPV = €

Answer key

  1. 1. PB = 3.139 years
  2. 2. PB = 3.828 years
  3. 3. EAC = 21037 €
  4. 4. DPB = 4.229 years
  5. 5. IRR = 42.29 %
  6. 6. NPV = −4980 €

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