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
years0123? 5 0008 00018 000

A machine is expected to save €5 000, €8 000, €18 000 at the end of years 1 to 3, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 5 000CF2 = 8 000CF3 = 18 000
PV = €
2.Easy
years01234−50 00015 50015 50015 50015 500

A project costs €50 000 today and returns €15 500 at the end of each year for 4 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €50 000CF = €15 500n = 4r = 5%
PI =
3.Medium
years012345€30 000€5 000€5 000€5 000€5 000€5 000r = 5%, EAC = ?

A machine costs €30 000 today, lasts 5 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 5%. Find its equivalent annual cost EAC.

C0 = €30 000M = €5 000n = 5r = 5%
EAC = €
4.Medium
years012345−40 00010 50010 50010 50010 50016 500

A machine costs €40 000 today. It generates €10 500 at the end of each year for 5 years and can then be sold for €6 000. The cost of capital is 10%. Find the net present value NPV.

C0 = €40 000CF = €10 500S = €6 000n = 5r = 10%
NPV = €
5.Hard
years012−10 0007 0007 000

A project costs €10 000 and returns €7 000, €7 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 000CF2 = 7 000
IRR = %
6.Hard
years0123−25 00013 00017 00013 500

A project costs €25 000 and returns €13 000, €17 000, €13 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 13 000CF2 = 17 000CF3 = 13 500
IRR = %

Answer key

  1. 1. PV = 22232 €
  2. 2. PI = 1.099
  3. 3. EAC = 11929 €
  4. 4. NPV = 3529 €
  5. 5. IRR = 25.69 %
  6. 6. IRR = 33.36 %

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