A machine is expected to save €18 000, €15 000, €10 000, €8 000 at the end of years 1 to 4, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.
NPV & IRR worksheet with answers
A project costs €80 000 today and returns €45 000 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.
An investment of €20 000 gives these cash flows at the end of years 1 to 4: €8 000, €9 000, €9 000, €7 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.
A machine costs €60 000 today. It generates €13 000 at the end of each year for 5 years and can then be sold for €15 000. The cost of capital is 6%. Find the net present value NPV.
A project costs €10 000 and returns €3 500, €4 500, €5 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
A project costs €20 000 and returns €11 000, €13 000, €11 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
Answer key
- 1. PV = 40231 €
- 2. NPV = 40286 €
- 3. NPV = 8025 €
- 4. NPV = 5970 €
- 5. IRR = 15.35 %
- 6. IRR = 34.08 %
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