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
years01234−25 00010 50010 50010 50010 500

A project costs €25 000 today and returns €10 500 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −25 000CF1 = 10 500CF2 = 10 500CF3 = 10 500CF4 = 10 500
NPV = €
2.Easy
years0123−80 00034 50034 50034 500

A project costs €80 000 today and returns €34 500 at the end of each year for 3 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €80 000CF = €34 500n = 3r = 6%
PI =
3.Medium
years0123−75 00035 00034 00026 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €35 000, €34 000, €26 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −75 000CF1 = 35 000CF2 = 34 000CF3 = 26 000
NPV = €
4.Medium
years0123−40 00015 50015 50025 500

A machine costs €40 000 today. It generates €15 500 at the end of each year for 3 years and can then be sold for €10 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €40 000CF = €15 500S = €10 000n = 3r = 12%
NPV = €
5.Hard
years0123−40 00018 50015 50021 500

A project costs €40 000 and returns €18 500, €15 500, €21 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 18 500CF2 = 15 500CF3 = 21 500
IRR = %
6.Hard
years01234−200 00060 000+5%+5%+5%r = 8%, 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 8%. Find the net present value NPV.

C0 = €200 000CF1 = €60 000g = 5%n = 4r = 8%
NPV = €

Answer key

  1. 1. NPV = 12232 €
  2. 2. PI = 1.153
  3. 3. NPV = 10109 €
  4. 4. NPV = 4346 €
  5. 5. IRR = 17.84 %
  6. 6. NPV = 13133 €

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