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
years012345−100 00025 00038 00040 00034 00034 000

A project costs €100 000 today and returns €25 000, €38 000, €40 000, €34 000, €34 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −100 000CF1 = 25 000CF2 = 38 000CF3 = 40 000CF4 = 34 000CF5 = 34 000
PB = years
2.Easy
years01234? 6 00020 00025 00020 000

A machine is expected to save €6 000, €20 000, €25 000, €20 000 at the end of years 1 to 4, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 6 000CF2 = 20 000CF3 = 25 000CF4 = 20 000
PV = €
3.Medium
years0123456−50 00018 00018 00018 00018 00018 00018 000

A project costs €50 000 today and returns €18 000 at the end of each year for 6 years. 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 = −50 000CF1 = 18 000CF2 = 18 000CF3 = 18 000CF4 = 18 000CF5 = 18 000CF6 = 18 000
DPB = years
4.Medium
years0123…9−250 00025 000+2%+2%…r = 11%, NPV = ?

A project costs €250 000 today. It generates €25 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €250 000CF1 = €25 000g = 2%r = 11%
NPV = €
5.Hard
r (%)NPVABr* = ?0

Project A costs €40 000 and returns €23 000, €15 000, €9 000 at the end of years 1 to 3. Project B costs €50 000 and returns €13 500, €20 000, €26 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −40 000, 23 000, 15 000, 9 000B: −50 000, 13 500, 20 000, 26 500
r* = %
6.Hard
years0123−20 0007 00014 50012 000

A project costs €20 000 and returns €7 000, €14 500, €12 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 7 000CF2 = 14 500CF3 = 12 000
IRR = %

Answer key

  1. 1. PB = 2.925 years
  2. 2. PV = 60293 €
  3. 3. DPB = 3.132 years
  4. 4. NPV = 27778 €
  5. 5. r* = 6.44 %
  6. 6. IRR = 28.13 %

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