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 00012 00012 00020 000

A machine is expected to save €10 000, €12 000, €12 000, €20 000 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 = 10 000CF2 = 12 000CF3 = 12 000CF4 = 20 000
PV = €
2.Easy
years0123? 18 0008 00020 000

A machine is expected to save €18 000, €8 000, €20 000 at the end of years 1 to 3, after which it is worthless. The required return is 10%. What is the most the company should pay for the machine today? Find PV.

r = 10%CF1 = 18 000CF2 = 8 000CF3 = 20 000
PV = €
3.Medium
years01234−45 00012 00016 00017 00014 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €12 000, €16 000, €17 000, €14 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −45 000CF1 = 12 000CF2 = 16 000CF3 = 17 000CF4 = 14 000
NPV = €
4.Medium
years01234−20 0009 0007 0008 0006 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €9 000, €7 000, €8 000, €6 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 9 000CF2 = 7 000CF3 = 8 000CF4 = 6 000
NPV = €
5.Hard
years012−50 00032 50032 500

A project costs €50 000 and returns €32 500, €32 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 32 500CF2 = 32 500
IRR = %
6.Hard
years0123−40 00022 00018 50025 500

A project costs €40 000 and returns €22 000, €18 500, €25 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 22 000CF2 = 18 500CF3 = 25 500
IRR = %

Answer key

  1. 1. PV = 43774 €
  2. 2. PV = 38002 €
  3. 3. NPV = −3285 €
  4. 4. NPV = 5633 €
  5. 5. IRR = 19.43 %
  6. 6. IRR = 29.09 %

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