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
years0123−50 00018 00018 00018 000

A project costs €50 000 today and returns €18 000 at the end of each year for 3 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €50 000CF = €18 000n = 3r = 10%
PI =
2.Easy
years012345−20 0006 0006 0006 0006 0006 000

A project costs €20 000 today and returns €6 000 at the end of each year for 5 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −20 000CF1 = 6 000CF2 = 6 000CF3 = 6 000CF4 = 6 000CF5 = 6 000
NPV = €
3.Medium
years0123−20 0007 0007 0008 000

An investment of €20 000 gives these cash flows at the end of years 1 to 3: €7 000, €7 000, €8 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −20 000CF1 = 7 000CF2 = 7 000CF3 = 8 000
NPV = €
4.Medium
years0123456−60 00013 50013 50013 50013 50013 50022 500

A machine costs €60 000 today. It generates €13 500 at the end of each year for 6 years and can then be sold for €9 000. The cost of capital is 6%. Find the net present value NPV.

C0 = €60 000CF = €13 500S = €9 000n = 6r = 6%
NPV = €
5.Hard
years012−10 0005 5005 500

A project costs €10 000 and returns €5 500, €5 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 5 500CF2 = 5 500
IRR = %
6.Hard
years0123…8−50 00011 50011 50011 50011 500

An investment of €50 000 returns €11 500 at the end of each year for 8 years. Find its internal rate of return IRR in percent.

C0 = €50 000CF = €11 500n = 8
IRR = %

Answer key

  1. 1. PI = 0.8953
  2. 2. NPV = 3956 €
  3. 3. NPV = −73.43 €
  4. 4. NPV = 12729 €
  5. 5. IRR = 6.596 %
  6. 6. IRR = 15.97 %

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