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
years012345−25 0007 5007 5007 5007 5007 500

A project costs €25 000 today and returns €7 500 at the end of each year for 5 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €25 000CF = €7 500n = 5r = 5%
PI =
2.Easy
years01234567−25 0004 5004 5004 5004 5004 5004 5004 500

A project costs €25 000 today and returns €4 500 at the end of each year for 7 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €25 000CF = €4 500n = 7r = 12%
PI =
3.Medium
years01234567€30 000€2 000€2 000€2 000€2 000€2 000€2 000€2 000r = 8%, EAC = ?

A machine costs €30 000 today, lasts 7 years and costs €2 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €30 000M = €2 000n = 7r = 8%
EAC = €
4.Medium
years0123…9−500 00052 000+3%+3%…r = 11%, NPV = ?

A project costs €500 000 today. It generates €52 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €500 000CF1 = €52 000g = 3%r = 11%
NPV = €
5.Hard
years012345−80 00017 50017 50017 50017 50017 500

An investment of €80 000 returns €17 500 at the end of each year for 5 years. Find its internal rate of return IRR in percent.

C0 = €80 000CF = €17 500n = 5
IRR = %
6.Hard
years0123−40 00025 50027 00024 500

A project costs €40 000 and returns €25 500, €27 000, €24 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 25 500CF2 = 27 000CF3 = 24 500
IRR = %

Answer key

  1. 1. PI = 1.299
  2. 2. PI = 0.8215
  3. 3. EAC = 7762 €
  4. 4. NPV = 150000 €
  5. 5. IRR = 3.063 %
  6. 6. IRR = 41.81 %

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