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 00022 50022 50022 500

A project costs €40 000 today and returns €22 500 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 = 22 500CF2 = 22 500CF3 = 22 500
NPV = €
2.Easy
years01234? 25 0005 00020 0005 000

A machine is expected to save €25 000, €5 000, €20 000, €5 000 at the end of years 1 to 4, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 25 000CF2 = 5 000CF3 = 20 000CF4 = 5 000
PV = €
3.Medium
years012345−60 00021 50023 50019 00015 00022 500

A project costs €60 000 today and returns €21 500, €23 500, €19 000, €15 000, €22 500 at the end of years 1 to 5. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −60 000CF1 = 21 500CF2 = 23 500CF3 = 19 000CF4 = 15 000CF5 = 22 500
DPB = years
4.Medium
years01234−45 00011 00013 00016 00019 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €11 000, €13 000, €16 000, €19 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −45 000CF1 = 11 000CF2 = 13 000CF3 = 16 000CF4 = 19 000
NPV = €
5.Hard
years0123−10 0005 5003 0004 000

A project costs €10 000 and returns €5 500, €3 000, €4 000 at the end of years 1 to 3. 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 = −10 000CF1 = 5 500CF2 = 3 000CF3 = 4 000
MIRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 000, €12 000, €7 000 at the end of years 1 to 3. Project B costs €35 000 and returns €9 000, €14 000, €21 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 000, 12 000, 7 000B: −35 000, 9 000, 14 000, 21 000
r* = %

Answer key

  1. 1. NPV = 21273 €
  2. 2. PV = 41529 €
  3. 3. DPB = 3.146 years
  4. 4. NPV = −4221 €
  5. 5. MIRR = 12.56 %
  6. 6. r* = 9.599 %

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