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
years01234−100 00048 00048 00048 00048 000

A project costs €100 000 today and returns €48 000 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −100 000CF1 = 48 000CF2 = 48 000CF3 = 48 000CF4 = 48 000
NPV = €
2.Easy
years01234? 20 00025 00015 00018 000

A machine is expected to save €20 000, €25 000, €15 000, €18 000 at the end of years 1 to 4, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.

r = 12%CF1 = 20 000CF2 = 25 000CF3 = 15 000CF4 = 18 000
PV = €
3.Medium
years01234−30 00010 0008 00015 00010 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €10 000, €8 000, €15 000, €10 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −30 000CF1 = 10 000CF2 = 8 000CF3 = 15 000CF4 = 10 000
NPV = €
4.Medium
years01234−60 00012 00024 00017 00016 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €12 000, €24 000, €17 000, €16 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −60 000CF1 = 12 000CF2 = 24 000CF3 = 17 000CF4 = 16 000
NPV = €
5.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €5 500, €4 000, €2 500 at the end of years 1 to 3. Project B costs €12 000 and returns €3 000, €4 500, €7 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 5 500, 4 000, 2 500B: −12 000, 3 000, 4 500, 7 000
r* = %
6.Hard
years012−40 00021 00028 500

A project costs €40 000 and returns €21 000, €28 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 21 000CF2 = 28 500
IRR = %

Answer key

  1. 1. NPV = 70206 €
  2. 2. PV = 59903 €
  3. 3. NPV = 2338 €
  4. 4. NPV = −5556 €
  5. 5. r* = 4.59 %
  6. 6. IRR = 14.65 %

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