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 00015 0006 000

A machine is expected to save €25 000, €15 000, €6 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 25 000CF2 = 15 000CF3 = 6 000
PV = €
2.Easy
years0123−100 00056 00056 00056 000

A project costs €100 000 today and returns €56 000 at the end of each year for 3 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −100 000CF1 = 56 000CF2 = 56 000CF3 = 56 000
NPV = €
3.Medium
years01234567−100 00018 50018 50018 50018 50018 50018 50038 500

A machine costs €100 000 today. It generates €18 500 at the end of each year for 7 years and can then be sold for €20 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF = €18 500S = €20 000n = 7r = 8%
NPV = €
4.Medium
years0123…9−400 00025 000+3%+3%…r = 10%, NPV = ?

A project costs €400 000 today. It generates €25 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 10%. Find the net present value NPV.

C0 = €400 000CF1 = €25 000g = 3%r = 10%
NPV = €
5.Hard
years0123…10−50 0005 500+2%+2%+2%r = 8%, NPV = ?

A project costs €50 000 today. Its cash flow is €5 500 at the end of year 1 and grows by 2% per year until the last cash flow at the end of year 10. The cost of capital is 8%. Find the net present value NPV.

C0 = €50 000CF1 = €5 500g = 2%n = 10r = 8%
NPV = €
6.Hard
years012345−100 00018 000+5%+5%+5%+5%r = 8%, NPV = ?

A project costs €100 000 today. Its cash flow is €18 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 5. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF1 = €18 000g = 5%n = 5r = 8%
NPV = €

Answer key

  1. 1. PV = 41973 €
  2. 2. NPV = 34503 €
  3. 3. NPV = 7988 €
  4. 4. NPV = −42857 €
  5. 5. NPV = −10091 €
  6. 6. NPV = −21169 €

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