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? 10 00020 00012 000

A machine is expected to save €10 000, €20 000, €12 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 10 000CF2 = 20 000CF3 = 12 000
PV = €
2.Easy
years012345−50 00011 5007 50018 50014 00012 000

A project costs €50 000 today and returns €11 500, €7 500, €18 500, €14 000, €12 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 11 500CF2 = 7 500CF3 = 18 500CF4 = 14 000CF5 = 12 000
PB = years
3.Medium
years0123…9−250 00021 000+3%+3%…r = 10%, NPV = ?

A project costs €250 000 today. It generates €21 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 10%. Find the net present value NPV.

C0 = €250 000CF1 = €21 000g = 3%r = 10%
NPV = €
4.Medium
years0123−45 00010 00016 00016 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €10 000, €16 000, €16 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −45 000CF1 = 10 000CF2 = 16 000CF3 = 16 000
NPV = €
5.Hard
years01234−200 00045 000+4%+4%+4%r = 12%, NPV = ?

A project costs €200 000 today. Its cash flow is €45 000 at the end of year 1 and grows by 4% 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 = €45 000g = 4%n = 4r = 12%
NPV = €
6.Hard
years012−20 0009 50012 500

A project costs €20 000 and returns €9 500, €12 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 9 500CF2 = 12 500
IRR = %

Answer key

  1. 1. PV = 37309 €
  2. 2. PB = 3.893 years
  3. 3. NPV = 50000 €
  4. 4. NPV = −7892 €
  5. 5. NPV = −55700 €
  6. 6. IRR = 6.297 %

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