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
years012345−100 00015 00019 00023 00037 00032 000

A project costs €100 000 today and returns €15 000, €19 000, €23 000, €37 000, €32 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −100 000CF1 = 15 000CF2 = 19 000CF3 = 23 000CF4 = 37 000CF5 = 32 000
PB = years
2.Easy
years012345−40 00014 50014 50014 50014 50014 500

A project costs €40 000 today and returns €14 500 at the end of each year for 5 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −40 000CF1 = 14 500CF2 = 14 500CF3 = 14 500CF4 = 14 500CF5 = 14 500
NPV = €
3.Medium
years01234−30 0008 5008 5008 50014 500

A machine costs €30 000 today. It generates €8 500 at the end of each year for 4 years and can then be sold for €6 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €30 000CF = €8 500S = €6 000n = 4r = 12%
NPV = €
4.Medium
years0123−45 00014 00011 0009 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €14 000, €11 000, €9 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −45 000CF1 = 14 000CF2 = 11 000CF3 = 9 000
NPV = €
5.Hard
years0123…9−20 0002 5002 5002 5002 500

An investment of €20 000 returns €2 500 at the end of each year for 9 years. Find its internal rate of return IRR in percent.

C0 = €20 000CF = €2 500n = 9
IRR = %
6.Hard
years0123−40 00021 00028 50026 000

A project costs €40 000 and returns €21 000, €28 500, €26 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 21 000CF2 = 28 500CF3 = 26 000
IRR = %

Answer key

  1. 1. PB = 4.188 years
  2. 2. NPV = 22777 €
  3. 3. NPV = −369.4 €
  4. 4. NPV = −14446 €
  5. 5. IRR = 2.423 %
  6. 6. IRR = 38.14 %

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