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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1.Easy

A project costs €80 000 today and returns €22 000 at the end of each year for 8 years. The required rate of return is 12%. Find the profitability index PI.

C₀ = €80 000CF = €22 000n = 8r = 12%

PI =

2.Easy

A machine is expected to save €15 000, €25 000, €12 000, €25 000 at the end of years 1 to 4, 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 = 15 000CF₂ = 25 000CF₃ = 12 000CF₄ = 25 000

PV = €

3.Medium

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €16 000, €17 000, €10 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF₀ = −45 000CF₁ = 16 000CF₂ = 17 000CF₃ = 10 000

NPV = €

4.Medium

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €24 000, €20 000, €28 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF₀ = −60 000CF₁ = 24 000CF₂ = 20 000CF₃ = 28 000

NPV = €

5.Hard

A project costs €25 000 and returns €18 500, €9 000, €11 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −25 000CF₁ = 18 500CF₂ = 9 000CF₃ = 11 000

IRR = %

6.Hard

A project costs €40 000 and returns €25 000, €27 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −40 000CF₁ = 25 000CF₂ = 27 500

IRR = %

Answer key

1. PI = 1.366
2. PV = 63224 €
3. NPV = −6380 €
4. NPV = −2698 €
5. IRR = 28.6 %
6. IRR = 19.86 %

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