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
years012345−50 00015 00015 00015 00015 00015 000

A project costs €50 000 today and returns €15 000 at the end of each year for 5 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −50 000CF1 = 15 000CF2 = 15 000CF3 = 15 000CF4 = 15 000CF5 = 15 000
NPV = €
2.Easy
years012345−10 0004 0004 0004 0004 0004 000

A project costs €10 000 today and returns €4 000 at the end of each year for 5 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −10 000CF1 = 4 000CF2 = 4 000CF3 = 4 000CF4 = 4 000CF5 = 4 000
NPV = €
3.Medium
years0123456−60 00023 00018 50012 00022 50024 50015 000

A project costs €60 000 today and returns €23 000, €18 500, €12 000, €22 500, €24 500, €15 000 at the end of years 1 to 6. The cost of capital is 6%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 6%CF0 = −60 000CF1 = 23 000CF2 = 18 500CF3 = 12 000CF4 = 22 500CF5 = 24 500CF6 = 15 000
DPB = years
4.Medium
years0123…8−50 0006 5006 5006 50014 000

A machine costs €50 000 today. It generates €6 500 at the end of each year for 8 years and can then be sold for €7 500. The cost of capital is 10%. Find the net present value NPV.

C0 = €50 000CF = €6 500S = €7 500n = 8r = 10%
NPV = €
5.Hard
years0123−40 00019 00028 50017 000

A project costs €40 000 and returns €19 000, €28 500, €17 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 19 000CF2 = 28 500CF3 = 17 000
IRR = %
6.Hard
years01234−40 00012 50012 50012 50012 500

An investment of €40 000 returns €12 500 at the end of each year for 4 years. Find its internal rate of return IRR in percent.

C0 = €40 000CF = €12 500n = 4
IRR = %

Answer key

  1. 1. NPV = 4072 €
  2. 2. NPV = 5163 €
  3. 3. DPB = 3.66 years
  4. 4. NPV = −11824 €
  5. 5. IRR = 28.6 %
  6. 6. IRR = 9.564 %

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