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
years01234−10 0005 0005 0005 0005 000

A project costs €10 000 today and returns €5 000 at the end of each year for 4 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −10 000CF1 = 5 000CF2 = 5 000CF3 = 5 000CF4 = 5 000
NPV = €
2.Easy
years0123? 12 00010 0006 000

A machine is expected to save €12 000, €10 000, €6 000 at the end of years 1 to 3, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 12 000CF2 = 10 000CF3 = 6 000
PV = €
3.Medium
years0123…10€50 000€1 500€1 500€1 500€1 500r = 5%, EAC = ?

A machine costs €50 000 today, lasts 10 years and costs €1 500 per year to run (paid at the end of each year). The cost of capital is 5%. Find its equivalent annual cost EAC.

C0 = €50 000M = €1 500n = 10r = 5%
EAC = €
4.Medium
years01234−45 00020 00017 00015 00013 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €20 000, €17 000, €15 000, €13 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −45 000CF1 = 20 000CF2 = 17 000CF3 = 15 000CF4 = 13 000
NPV = €
5.Hard
years0123−20 0008 5008 00012 500

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

CF0 = −20 000CF1 = 8 500CF2 = 8 000CF3 = 12 500
IRR = %
6.Hard
years012−50 00022 50031 500

A project costs €50 000 and returns €22 500, €31 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 22 500CF2 = 31 500
IRR = %

Answer key

  1. 1. NPV = 7326 €
  2. 2. PV = 24447 €
  3. 3. EAC = 7975 €
  4. 4. NPV = 13120 €
  5. 5. IRR = 19.62 %
  6. 6. IRR = 5 %

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