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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years01234−40 00019 00019 00019 00019 000

A project costs €40 000 today and returns €19 000 at the end of each year for 4 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −40 000CF1 = 19 000CF2 = 19 000CF3 = 19 000CF4 = 19 000
NPV = €
2.Easy
years0123? 15 00010 00020 000

A machine is expected to save €15 000, €10 000, €20 000 at the end of years 1 to 3, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.

r = 12%CF1 = 15 000CF2 = 10 000CF3 = 20 000
PV = €
3.Medium
years0123…9−100 0008 000+1%+1%…r = 10%, NPV = ?

A project costs €100 000 today. It generates €8 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 10%. Find the net present value NPV.

C0 = €100 000CF1 = €8 000g = 1%r = 10%
NPV = €
4.Medium
years012345−60 00014 00020 50015 50026 00026 000

A project costs €60 000 today and returns €14 000, €20 500, €15 500, €26 000, €26 000 at the end of years 1 to 5. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −60 000CF1 = 14 000CF2 = 20 500CF3 = 15 500CF4 = 26 000CF5 = 26 000
DPB = years
5.Hard
years0123−50 00018 50032 50036 000

A project costs €50 000 and returns €18 500, €32 500, €36 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 18 500CF2 = 32 500CF3 = 36 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €40 000 and returns €23 000, €15 000, €7 500 at the end of years 1 to 3. Project B costs €42 000 and returns €11 000, €16 500, €21 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −40 000, 23 000, 15 000, 7 500B: −42 000, 11 000, 16 500, 21 500
r* = %

Answer key

  1. 1. NPV = 17710 €
  2. 2. PV = 35600 €
  3. 3. NPV = −11111 €
  4. 4. DPB = 3.686 years
  5. 5. IRR = 29.81 %
  6. 6. r* = 5.098 %

Full step-by-step solutions: practise this topic on examproblems.com.