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
years01234−50 00016 50017 50018 00011 000

A project costs €50 000 today and returns €16 500, €17 500, €18 000, €11 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 16 500CF2 = 17 500CF3 = 18 000CF4 = 11 000
PB = years
2.Easy
years01234−10 0003 5003 5003 5003 500

A project costs €10 000 today and returns €3 500 at the end of each year for 4 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −10 000CF1 = 3 500CF2 = 3 500CF3 = 3 500CF4 = 3 500
NPV = €
3.Medium
years01234−60 00026 00028 00030 00026 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €26 000, €28 000, €30 000, €26 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −60 000CF1 = 26 000CF2 = 28 000CF3 = 30 000CF4 = 26 000
NPV = €
4.Medium
years01234−60 00024 00025 00030 00017 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €24 000, €25 000, €30 000, €17 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −60 000CF1 = 24 000CF2 = 25 000CF3 = 30 000CF4 = 17 000
NPV = €
5.Hard
years0123−40 00017 00020 50030 000

A project costs €40 000 and returns €17 000, €20 500, €30 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 17 000CF2 = 20 500CF3 = 30 000
IRR = %
6.Hard
years0123…10−10 0002 5002 5002 5002 500

An investment of €10 000 returns €2 500 at the end of each year for 10 years. Find its internal rate of return IRR in percent.

C0 = €10 000CF = €2 500n = 10
IRR = %

Answer key

  1. 1. PB = 2.889 years
  2. 2. NPV = 1592 €
  3. 3. NPV = 33080 €
  4. 4. NPV = 19966 €
  5. 5. IRR = 28.16 %
  6. 6. IRR = 21.41 %

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