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 project costs €80 000 today and returns €25 000, €15 500, €23 500, €21 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF₀ = −80 000CF₁ = 25 000CF₂ = 15 500CF₃ = 23 500CF₄ = 21 500

PB = years

2.Easy

A project costs €25 000 today and returns €10 500 at the end of each year for 3 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF₀ = −25 000CF₁ = 10 500CF₂ = 10 500CF₃ = 10 500

NPV = €

3.Medium

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €14 000, €8 000, €14 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF₀ = −30 000CF₁ = 14 000CF₂ = 8 000CF₃ = 14 000

NPV = €

4.Medium

A project costs €400 000 today. It generates €47 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 10%. Find the net present value NPV.

C₀ = €400 000CF₁ = €47 000g = 1%r = 10%

NPV = €

5.Hard

A project costs €50 000 and returns €36 500, €19 500, €32 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −50 000CF₁ = 36 500CF₂ = 19 500CF₃ = 32 000

IRR = %

6.Hard

A project costs €20 000 and returns €9 000, €11 500, €13 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −20 000CF₁ = 9 000CF₂ = 11 500CF₃ = 13 000

IRR = %

Answer key

1. PB = 3.744 years
2. NPV = 3594 €
3. NPV = −1158 €
4. NPV = 122222 €
5. IRR = 36.16 %
6. IRR = 28.81 %

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