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

A machine is expected to save €12 000, €12 000, €12 000, €8 000 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 = 12 000CF₂ = 12 000CF₃ = 12 000CF₄ = 8 000

PV = €

2.Easy

A project costs €40 000 today and returns €17 000 at the end of each year for 3 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF₀ = −40 000CF₁ = 17 000CF₂ = 17 000CF₃ = 17 000

NPV = €

3.Medium

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €22 000, €15 000, €12 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF₀ = −45 000CF₁ = 22 000CF₂ = 15 000CF₃ = 12 000

NPV = €

4.Medium

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €4 000, €8 000, €9 000, €7 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF₀ = −20 000CF₁ = 4 000CF₂ = 8 000CF₃ = 9 000CF₄ = 7 000

NPV = €

5.Hard

A project costs €10 000 and returns €3 500, €4 500, €6 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −10 000CF₁ = 3 500CF₂ = 4 500CF₃ = 6 000

IRR = %

6.Hard

A project costs €25 000 and returns €18 500, €12 500, €12 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −25 000CF₁ = 18 500CF₂ = 12 500CF₃ = 12 000

IRR = %

Answer key

1. PV = 33906 €
2. NPV = 2276 €
3. NPV = −6637 €
4. NPV = 2852 €
5. IRR = 17.14 %
6. IRR = 36.43 %

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