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? 25 00020 00020 000

A machine is expected to save €25 000, €20 000, €20 000 at the end of years 1 to 3, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 25 000CF2 = 20 000CF3 = 20 000
PV = €
2.Easy
years0123−100 00046 00046 00046 000

A project costs €100 000 today and returns €46 000 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 = −100 000CF1 = 46 000CF2 = 46 000CF3 = 46 000
NPV = €
3.Medium
years0123…9−500 00042 000+3%+3%…r = 10%, NPV = ?

A project costs €500 000 today. It generates €42 000 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 = €500 000CF1 = €42 000g = 3%r = 10%
NPV = €
4.Medium
years0123−20 0004 0006 0008 000

An investment of €20 000 gives these cash flows at the end of years 1 to 3: €4 000, €6 000, €8 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −20 000CF1 = 4 000CF2 = 6 000CF3 = 8 000
NPV = €
5.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 000, €11 000, €7 000 at the end of years 1 to 3. Project B costs €40 000 and returns €10 500, €16 000, €21 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 000, 11 000, 7 000B: −40 000, 10 500, 16 000, 21 000
r* = %
6.Hard
years012−50 00030 50026 000

A project costs €50 000 and returns €30 500, €26 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 30 500CF2 = 26 000
IRR = %

Answer key

  1. 1. PV = 56172 €
  2. 2. NPV = 10484 €
  3. 3. NPV = 100000 €
  4. 4. NPV = −3838 €
  5. 5. r* = 6.203 %
  6. 6. IRR = 8.796 %

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