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
years01234−25 00011 00011 00011 00011 000

A project costs €25 000 today and returns €11 000 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −25 000CF1 = 11 000CF2 = 11 000CF3 = 11 000CF4 = 11 000
NPV = €
2.Easy
years01234? 10 00012 00012 0005 000

A machine is expected to save €10 000, €12 000, €12 000, €5 000 at the end of years 1 to 4, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 10 000CF2 = 12 000CF3 = 12 000CF4 = 5 000
PV = €
3.Medium
years01234−75 00022 00026 00032 00026 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €22 000, €26 000, €32 000, €26 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −75 000CF1 = 22 000CF2 = 26 000CF3 = 32 000CF4 = 26 000
NPV = €
4.Medium
years0123−30 00011 00011 00014 000

A machine costs €30 000 today. It generates €11 000 at the end of each year for 3 years and can then be sold for €3 000. The cost of capital is 10%. Find the net present value NPV.

C0 = €30 000CF = €11 000S = €3 000n = 3r = 10%
NPV = €
5.Hard
years012−10 0007 0004 500

A project costs €10 000 and returns €7 000, €4 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 000CF2 = 4 500
IRR = %
6.Hard
years0123−50 00031 00031 00036 500

A project costs €50 000 and returns €31 000, €31 000, €36 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 31 000CF2 = 31 000CF3 = 36 500
IRR = %

Answer key

  1. 1. NPV = 14005 €
  2. 2. PV = 28518 €
  3. 3. NPV = 12175 €
  4. 4. NPV = −390.7 €
  5. 5. IRR = 10.66 %
  6. 6. IRR = 41.93 %

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