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
years0123456−50 0009 5008 0008 0009 50016 00013 500

A project costs €50 000 today and returns €9 500, €8 000, €8 000, €9 500, €16 000, €13 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 9 500CF2 = 8 000CF3 = 8 000CF4 = 9 500CF5 = 16 000CF6 = 13 500
PB = years
2.Easy
years0123…8−50 0009 5009 5009 5009 500

A project costs €50 000 today and returns €9 500 at the end of each year for 8 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €50 000CF = €9 500n = 8r = 10%
PI =
3.Medium
years0123…9−100 0009 000+1%+1%…r = 8%, NPV = ?

A project costs €100 000 today. It generates €9 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF1 = €9 000g = 1%r = 8%
NPV = €
4.Medium
years01234−75 00017 00019 00015 00020 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €17 000, €19 000, €15 000, €20 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −75 000CF1 = 17 000CF2 = 19 000CF3 = 15 000CF4 = 20 000
NPV = €
5.Hard
years0123−20 00014 0008 50012 000

A project costs €20 000 and returns €14 000, €8 500, €12 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 14 000CF2 = 8 500CF3 = 12 000
IRR = %
6.Hard
years0123456−200 00030 000+5%+5%+5%+5%+5%r = 12%, NPV = ?

A project costs €200 000 today. Its cash flow is €30 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 6. The cost of capital is 12%. Find the net present value NPV.

C0 = €200 000CF1 = €30 000g = 5%n = 6r = 12%
NPV = €

Answer key

  1. 1. PB = 4.938 years
  2. 2. PI = 1.014
  3. 3. NPV = 28571 €
  4. 4. NPV = −12164 €
  5. 5. IRR = 34.65 %
  6. 6. NPV = −62400 €

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