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
years0123−25 00010 50010 50010 500

A project costs €25 000 today and returns €10 500 at the end of each year for 3 years. The required rate of return is 9%. Find the net present value NPV.

r = 9%CF0 = −25 000CF1 = 10 500CF2 = 10 500CF3 = 10 500
NPV = €
2.Easy
years01234? 10 00015 00025 00015 000

A machine is expected to save €10 000, €15 000, €25 000, €15 000 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 = 15 000CF3 = 25 000CF4 = 15 000
PV = €
3.Medium
years0123456−40 00011 50011 50011 50011 50011 50011 500

A project costs €40 000 today and returns €11 500 at the end of each year for 6 years. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −40 000CF1 = 11 500CF2 = 11 500CF3 = 11 500CF4 = 11 500CF5 = 11 500CF6 = 11 500
DPB = years
4.Medium
years012345−50 00016 00016 00016 00016 00016 000

A project costs €50 000 today and returns €16 000 at the end of each year for 5 years. 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 = −50 000CF1 = 16 000CF2 = 16 000CF3 = 16 000CF4 = 16 000CF5 = 16 000
DPB = years
5.Hard
years0123−50 00036 50026 50029 500

A project costs €50 000 and returns €36 500, €26 500, €29 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 36 500CF2 = 26 500CF3 = 29 500
IRR = %
6.Hard
years01234−20 0006 0006 0006 0006 000

An investment of €20 000 returns €6 000 at the end of each year for 4 years. Find its internal rate of return IRR in percent.

C0 = €20 000CF = €6 000n = 4
IRR = %

Answer key

  1. 1. NPV = 1579 €
  2. 2. PV = 52991 €
  3. 3. DPB = 3.918 years
  4. 4. DPB = 3.934 years
  5. 5. IRR = 40.57 %
  6. 6. IRR = 7.714 %

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