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
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 10%. Find the net present value NPV.

r = 10%CF0 = −50 000CF1 = 16 500CF2 = 16 500CF3 = 16 500CF4 = 16 500CF5 = 16 500
NPV = €
2.Easy
years012345−80 00029 00029 00029 00029 00029 000

A project costs €80 000 today and returns €29 000 at the end of each year for 5 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −80 000CF1 = 29 000CF2 = 29 000CF3 = 29 000CF4 = 29 000CF5 = 29 000
NPV = €
3.Medium
years01234567€50 000€5 000€5 000€5 000€5 000€5 000€5 000€5 000r = 8%, EAC = ?

A machine costs €50 000 today, lasts 7 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €50 000M = €5 000n = 7r = 8%
EAC = €
4.Medium
years0123−45 00013 00020 00011 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €13 000, €20 000, €11 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −45 000CF1 = 13 000CF2 = 20 000CF3 = 11 000
NPV = €
5.Hard
years0123…9−100 00012 000+4%+4%+4%r = 8%, NPV = ?

A project costs €100 000 today. Its cash flow is €12 000 at the end of year 1 and grows by 4% per year until the last cash flow at the end of year 9. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF1 = €12 000g = 4%n = 9r = 8%
NPV = €
6.Hard
years0123−50 00023 50031 00025 500

A project costs €50 000 and returns €23 500, €31 000, €25 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 23 500CF2 = 31 000CF3 = 25 500
IRR = %

Answer key

  1. 1. NPV = 12548 €
  2. 2. NPV = 24539 €
  3. 3. EAC = 14604 €
  4. 4. NPV = −11340 €
  5. 5. NPV = −13603 €
  6. 6. IRR = 27.23 %

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