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
years01234567−20 0003 5003 5003 5003 5003 5003 5003 500

A project costs €20 000 today and returns €3 500 at the end of each year for 7 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €20 000CF = €3 500n = 7r = 5%
PI =
2.Easy
years012345−30 0006 50011 5008 50011 50011 000

A project costs €30 000 today and returns €6 500, €11 500, €8 500, €11 500, €11 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −30 000CF1 = 6 500CF2 = 11 500CF3 = 8 500CF4 = 11 500CF5 = 11 000
PB = years
3.Medium
years01234−75 00021 00033 00024 00034 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €21 000, €33 000, €24 000, €34 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −75 000CF1 = 21 000CF2 = 33 000CF3 = 24 000CF4 = 34 000
NPV = €
4.Medium
years01234−20 0009 0007 0006 0005 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €9 000, €7 000, €6 000, €5 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −20 000CF1 = 9 000CF2 = 7 000CF3 = 6 000CF4 = 5 000
NPV = €
5.Hard
years0123…10−80 00019 00019 00019 00019 000

An investment of €80 000 returns €19 000 at the end of each year for 10 years. Find its internal rate of return IRR in percent.

C0 = €80 000CF = €19 000n = 10
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €40 000 and returns €23 000, €14 500, €9 000 at the end of years 1 to 3. Project B costs €42 000 and returns €11 000, €18 000, €21 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −40 000, 23 000, 14 500, 9 000B: −42 000, 11 000, 18 000, 21 500
r* = %

Answer key

  1. 1. PI = 1.013
  2. 2. PB = 3.304 years
  3. 3. NPV = 3434 €
  4. 4. NPV = 4217 €
  5. 5. IRR = 19.87 %
  6. 6. r* = 7.193 %

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