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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years01234? 5 00015 00018 00025 000

A machine is expected to save €5 000, €15 000, €18 000, €25 000 at the end of years 1 to 4, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 5 000CF2 = 15 000CF3 = 18 000CF4 = 25 000
PV = €
2.Easy
years01234−30 00011 0007 00010 5005 000

A project costs €30 000 today and returns €11 000, €7 000, €10 500, €5 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −30 000CF1 = 11 000CF2 = 7 000CF3 = 10 500CF4 = 5 000
PB = years
3.Medium
years0123456−30 0007 0007 0007 0007 0007 00013 000

A machine costs €30 000 today. It generates €7 000 at the end of each year for 6 years and can then be sold for €6 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €30 000CF = €7 000S = €6 000n = 6r = 12%
NPV = €
4.Medium
years0123456€80 000€5 000€5 000€5 000€5 000€5 000€5 000r = 6%, EAC = ?

A machine costs €80 000 today, lasts 6 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 6%. Find its equivalent annual cost EAC.

C0 = €80 000M = €5 000n = 6r = 6%
EAC = €
5.Hard
years012−25 0009 50018 500

A project costs €25 000 and returns €9 500, €18 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 9 500CF2 = 18 500
IRR = %
6.Hard
years012−10 0005 5005 500

A project costs €10 000 and returns €5 500, €5 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 5 500CF2 = 5 500
IRR = %

Answer key

  1. 1. PV = 50154 €
  2. 2. PB = 3.3 years
  3. 3. NPV = 1820 €
  4. 4. EAC = 21269 €
  5. 5. IRR = 7.097 %
  6. 6. IRR = 6.596 %

Full step-by-step solutions: practise this topic on examproblems.com.