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
years012345−50 00018 00018 00018 00018 00018 000

A project costs €50 000 today and returns €18 000 at the end of each year for 5 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −50 000CF1 = 18 000CF2 = 18 000CF3 = 18 000CF4 = 18 000CF5 = 18 000
NPV = €
2.Easy
years012345−40 0006 5007 00012 50011 0008 500

A project costs €40 000 today and returns €6 500, €7 000, €12 500, €11 000, €8 500 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 6 500CF2 = 7 000CF3 = 12 500CF4 = 11 000CF5 = 8 500
PB = years
3.Medium
years0123…8€50 000€2 000€2 000€2 000€2 000r = 10%, EAC = ?

A machine costs €50 000 today, lasts 8 years and costs €2 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.

C0 = €50 000M = €2 000n = 8r = 10%
EAC = €
4.Medium
years0123456€30 000€5 000€5 000€5 000€5 000€5 000€5 000r = 6%, EAC = ?

A machine costs €30 000 today, lasts 6 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 6%. Find its equivalent annual cost EAC.

C0 = €30 000M = €5 000n = 6r = 6%
EAC = €
5.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €5 500, €3 500, €2 500 at the end of years 1 to 3. Project B costs €12 000 and returns €3 000, €5 000, €6 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 5 500, 3 500, 2 500B: −12 000, 3 000, 5 000, 6 000
r* = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €6 000, €4 000, €2 500 at the end of years 1 to 3. Project B costs €15 000 and returns €4 500, €6 500, €8 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 6 000, 4 000, 2 500B: −15 000, 4 500, 6 500, 8 000
r* = %

Answer key

  1. 1. NPV = 27931 €
  2. 2. PB = 4.353 years
  3. 3. EAC = 11372 €
  4. 4. EAC = 11101 €
  5. 5. r* = 5.034 %
  6. 6. r* = 8.826 %

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