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
years0123456−80 00025 50025 50025 50025 50025 50025 500

A project costs €80 000 today and returns €25 500 at the end of each year for 6 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €80 000CF = €25 500n = 6r = 6%
PI =
2.Easy
years0123−80 00033 50033 50033 500

A project costs €80 000 today and returns €33 500 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 = −80 000CF1 = 33 500CF2 = 33 500CF3 = 33 500
NPV = €
3.Medium
years0123−60 00025 00013 00012 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €25 000, €13 000, €12 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −60 000CF1 = 25 000CF2 = 13 000CF3 = 12 000
NPV = €
4.Medium
years01234−40 00010 00017 50017 50011 000

A project costs €40 000 today and returns €10 000, €17 500, €17 500, €11 000 at the end of years 1 to 4. The cost of capital is 10%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 10%CF0 = −40 000CF1 = 10 000CF2 = 17 500CF3 = 17 500CF4 = 11 000
DPB = years
5.Hard
years0123−20 0007 50010 50013 000

A project costs €20 000 and returns €7 500, €10 500, €13 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 7 500CF2 = 10 500CF3 = 13 000
IRR = %
6.Hard
years0123−50 00026 00027 00029 000

A project costs €50 000 and returns €26 000, €27 000, €29 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 26 000CF2 = 27 000CF3 = 29 000
IRR = %

Answer key

  1. 1. PI = 1.567
  2. 2. NPV = −3512 €
  3. 3. NPV = −18774 €
  4. 4. DPB = 3.439 years
  5. 5. IRR = 23.07 %
  6. 6. IRR = 28.85 %

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