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? 10 0006 0005 00010 000

A machine is expected to save €10 000, €6 000, €5 000, €10 000 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 = 10 000CF2 = 6 000CF3 = 5 000CF4 = 10 000
PV = €
2.Easy
years01234−100 00024 00033 00035 00024 500

A project costs €100 000 today and returns €24 000, €33 000, €35 000, €24 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −100 000CF1 = 24 000CF2 = 33 000CF3 = 35 000CF4 = 24 500
PB = years
3.Medium
years012345−50 00016 50016 50016 50016 50016 500

A project costs €50 000 today and returns €16 500 at the end of each year for 5 years. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −50 000CF1 = 16 500CF2 = 16 500CF3 = 16 500CF4 = 16 500CF5 = 16 500
DPB = years
4.Medium
years0123−60 00018 00016 00017 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €18 000, €16 000, €17 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −60 000CF1 = 18 000CF2 = 16 000CF3 = 17 000
NPV = €
5.Hard
years0123−50 00020 50018 50019 500

A project costs €50 000 and returns €20 500, €18 500, €19 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 20 500CF2 = 18 500CF3 = 19 500
IRR = %
6.Hard
years0123−40 00014 50014 50014 500

A project costs €40 000 and returns €14 500, €14 500, €14 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 14 500CF2 = 14 500CF3 = 14 500
IRR = %

Answer key

  1. 1. PV = 25723 €
  2. 2. PB = 3.327 years
  3. 3. DPB = 3.373 years
  4. 4. NPV = −21072 €
  5. 5. IRR = 8.36 %
  6. 6. IRR = 4.314 %

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