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.

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
years01234−10 0004 0004 0004 0004 000

A project costs €10 000 today and returns €4 000 at the end of each year for 4 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €10 000CF = €4 000n = 4r = 8%
PI =
2.Easy
years0123−25 00011 50011 50011 500

A project costs €25 000 today and returns €11 500 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −25 000CF1 = 11 500CF2 = 11 500CF3 = 11 500
NPV = €
3.Medium
years0123−75 00020 00017 00028 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €20 000, €17 000, €28 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −75 000CF1 = 20 000CF2 = 17 000CF3 = 28 000
NPV = €
4.Medium
years01234−75 00017 00017 00031 00021 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €17 000, €17 000, €31 000, €21 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −75 000CF1 = 17 000CF2 = 17 000CF3 = 31 000CF4 = 21 000
NPV = €
5.Hard
years0123−20 0008 50013 5008 000

A project costs €20 000 and returns €8 500, €13 500, €8 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 8 500CF2 = 13 500CF3 = 8 000
IRR = %
6.Hard
years012−25 00012 00015 000

A project costs €25 000 and returns €12 000, €15 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 12 000CF2 = 15 000
IRR = %

Answer key

  1. 1. PI = 1.325
  2. 2. NPV = 5740 €
  3. 3. NPV = −19679 €
  4. 4. NPV = −2938 €
  5. 5. IRR = 23.44 %
  6. 6. IRR = 5.093 %

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