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

A project costs €100 000 today and returns €42 000 at the end of each year for 3 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF₀ = −100 000CF₁ = 42 000CF₂ = 42 000CF₃ = 42 000

NPV = €

2.Easy

A project costs €50 000 today and returns €18 500, €10 000, €16 500, €19 500, €15 000 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 = 18 500CF₂ = 10 000CF₃ = 16 500CF₄ = 19 500CF₅ = 15 000

PB = years

3.Medium

A machine costs €40 000 today, lasts 9 years and costs €1 000 per year to run (paid at the end of each year). The cost of capital is 12%. Find its equivalent annual cost EAC.

C₀ = €40 000M = €1 000n = 9r = 12%

EAC = €

4.Medium

A machine costs €60 000 today, lasts 5 years and costs €2 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C₀ = €60 000M = €2 000n = 5r = 8%

EAC = €

5.Hard

A project costs €40 000 and returns €28 500, €14 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −40 000CF₁ = 28 500CF₂ = 14 500

IRR = %

6.Hard

A project costs €10 000 and returns €6 000, €6 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −10 000CF₁ = 6 000CF₂ = 6 000

IRR = %

Answer key

1. NPV = 10221 €
2. PB = 3.256 years
3. EAC = 8507 €
4. EAC = 17027 €
5. IRR = 5.583 %
6. IRR = 13.07 %

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