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? 8 0005 00010 0006 000

A machine is expected to save €8 000, €5 000, €10 000, €6 000 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 = 8 000CF2 = 5 000CF3 = 10 000CF4 = 6 000
PV = €
2.Easy
years0123−80 00039 00039 00039 000

A project costs €80 000 today and returns €39 000 at the end of each year for 3 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −80 000CF1 = 39 000CF2 = 39 000CF3 = 39 000
NPV = €
3.Medium
years0123…9−500 00028 000+2%+2%…r = 9%, NPV = ?

A project costs €500 000 today. It generates €28 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €500 000CF1 = €28 000g = 2%r = 9%
NPV = €
4.Medium
years0123456−100 00020 50020 50020 50020 50020 50040 500

A machine costs €100 000 today. It generates €20 500 at the end of each year for 6 years and can then be sold for €20 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF = €20 500S = €20 000n = 6r = 8%
NPV = €
5.Hard
years0123…9−200 00024 500+4%+4%+4%r = 8%, NPV = ?

A project costs €200 000 today. Its cash flow is €24 500 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 = €200 000CF1 = €24 500g = 4%n = 9r = 8%
NPV = €
6.Hard
years0123−20 0008 00013 0009 000

A project costs €20 000 and returns €8 000, €13 000, €9 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 8 000CF2 = 13 000CF3 = 9 000
IRR = %

Answer key

  1. 1. PV = 23520 €
  2. 2. NPV = 13671 €
  3. 3. NPV = −100000 €
  4. 4. NPV = 7372 €
  5. 5. NPV = −23606 €
  6. 6. IRR = 22.79 %

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