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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years0123−40 00022 50022 50022 500

A project costs €40 000 today and returns €22 500 at the end of each year for 3 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −40 000CF1 = 22 500CF2 = 22 500CF3 = 22 500
NPV = €
2.Easy
years01234−40 00013 5009 5008 50011 500

A project costs €40 000 today and returns €13 500, €9 500, €8 500, €11 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 13 500CF2 = 9 500CF3 = 8 500CF4 = 11 500
PB = years
3.Medium
years0123456€50 000€1 000€1 000€1 000€1 000€1 000€1 000r = 8%, EAC = ?

A machine costs €50 000 today, lasts 6 years and costs €1 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €50 000M = €1 000n = 6r = 8%
EAC = €
4.Medium
years0123−45 00012 00017 00014 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €12 000, €17 000, €14 000. The cost of capital is 9%. Find the net present value NPV.

r = 9%CF0 = −45 000CF1 = 12 000CF2 = 17 000CF3 = 14 000
NPV = €
5.Hard
r (%)NPVABr* = ?0

Project A costs €20 000 and returns €11 000, €8 000, €4 000 at the end of years 1 to 3. Project B costs €22 000 and returns €5 500, €8 500, €11 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −20 000, 11 000, 8 000, 4 000B: −22 000, 5 500, 8 500, 11 500
r* = %
6.Hard
years0123−10 0005 5005 5005 000

A project costs €10 000 and returns €5 500, €5 500, €5 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 5 500CF2 = 5 500CF3 = 5 000
IRR = %

Answer key

  1. 1. NPV = 14041 €
  2. 2. PB = 3.739 years
  3. 3. EAC = 11816 €
  4. 4. NPV = −8872 €
  5. 5. r* = 2.969 %
  6. 6. IRR = 28.27 %

Full step-by-step solutions: practise this topic on examproblems.com.