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
years0123…8−40 0006 0006 0006 0006 000

A project costs €40 000 today and returns €6 000 at the end of each year for 8 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €40 000CF = €6 000n = 8r = 10%
PI =
2.Easy
years0123−100 00046 00046 00046 000

A project costs €100 000 today and returns €46 000 at the end of each year for 3 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −100 000CF1 = 46 000CF2 = 46 000CF3 = 46 000
NPV = €
3.Medium
years01234−30 00012 00014 0008 00011 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €12 000, €14 000, €8 000, €11 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −30 000CF1 = 12 000CF2 = 14 000CF3 = 8 000CF4 = 11 000
NPV = €
4.Medium
years0123456€40 000€3 000€3 000€3 000€3 000€3 000€3 000r = 10%, EAC = ?

A machine costs €40 000 today, lasts 6 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.

C0 = €40 000M = €3 000n = 6r = 10%
EAC = €
5.Hard
years012−40 00025 00023 500

A project costs €40 000 and returns €25 000, €23 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 25 000CF2 = 23 500
IRR = %
6.Hard
years01234−100 00027 500+5%+5%+5%r = 8%, NPV = ?

A project costs €100 000 today. Its cash flow is €27 500 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 4. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF1 = €27 500g = 5%n = 4r = 8%
NPV = €

Answer key

  1. 1. PI = 0.8002
  2. 2. NPV = 5028 €
  3. 3. NPV = 6003 €
  4. 4. EAC = 12184 €
  5. 5. IRR = 14.02 %
  6. 6. NPV = −2314 €

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