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
years012345−60 00010 50012 50022 00018 00020 000

A project costs €60 000 today and returns €10 500, €12 500, €22 000, €18 000, €20 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −60 000CF1 = 10 500CF2 = 12 500CF3 = 22 000CF4 = 18 000CF5 = 20 000
PB = years
2.Easy
years0123−50 00023 00023 00023 000

A project costs €50 000 today and returns €23 000 at the end of each year for 3 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −50 000CF1 = 23 000CF2 = 23 000CF3 = 23 000
NPV = €
3.Medium
years01234−50 00016 50019 00019 00021 000

A project costs €50 000 today and returns €16 500, €19 000, €19 000, €21 000 at the end of years 1 to 4. The cost of capital is 6%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 6%CF0 = −50 000CF1 = 16 500CF2 = 19 000CF3 = 19 000CF4 = 21 000
DPB = years
4.Medium
years01234−75 00021 00022 00019 00022 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €21 000, €22 000, €19 000, €22 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −75 000CF1 = 21 000CF2 = 22 000CF3 = 19 000CF4 = 22 000
NPV = €
5.Hard
years0123…8−25 0004 0004 0004 0004 000

An investment of €25 000 returns €4 000 at the end of each year for 8 years. Find its internal rate of return IRR in percent.

C0 = €25 000CF = €4 000n = 8
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 500, €11 000, €7 000 at the end of years 1 to 3. Project B costs €40 000 and returns €10 500, €16 000, €21 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 500, 11 000, 7 000B: −40 000, 10 500, 16 000, 21 000
r* = %

Answer key

  1. 1. PB = 3.833 years
  2. 2. NPV = 9273 €
  3. 3. DPB = 3.094 years
  4. 4. NPV = −533 €
  5. 5. IRR = 5.837 %
  6. 6. r* = 4.898 %

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