A project costs €100 000 today and returns €30 000 at the end of each year for 5 years. The required rate of return is 15%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €50 000 today and returns €24 500 at the end of each year for 3 years. The required rate of return is 8%. Find the net present value NPV.
An investment of €75 000 gives these cash flows at the end of years 1 to 4: €23 000, €21 000, €19 000, €21 000. The cost of capital is 6%. Find the net present value NPV.
An investment of €20 000 gives these cash flows at the end of years 1 to 4: €8 000, €7 000, €6 000, €5 000. The cost of capital is 15%. Find the net present value NPV.
A project costs €20 000 and returns €12 000, €13 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
A project costs €25 000 and returns €18 500, €14 500, €13 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 564.7 €
- 2. NPV = 13139 €
- 3. NPV = −2025 €
- 4. NPV = −946.6 €
- 5. IRR = 16.02 %
- 6. IRR = 41.17 %
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