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
years0123456−40 00014 00011 0008 50012 5009 00012 500

A project costs €40 000 today and returns €14 000, €11 000, €8 500, €12 500, €9 000, €12 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 14 000CF2 = 11 000CF3 = 8 500CF4 = 12 500CF5 = 9 000CF6 = 12 500
PB = years
2.Easy
years01234−80 00038 50038 50038 50038 500

A project costs €80 000 today and returns €38 500 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −80 000CF1 = 38 500CF2 = 38 500CF3 = 38 500CF4 = 38 500
NPV = €
3.Medium
years01234−60 00013 00020 00013 00021 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €13 000, €20 000, €13 000, €21 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −60 000CF1 = 13 000CF2 = 20 000CF3 = 13 000CF4 = 21 000
NPV = €
4.Medium
years012345−40 0009 0009 0009 0009 00019 000

A machine costs €40 000 today. It generates €9 000 at the end of each year for 5 years and can then be sold for €10 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €40 000CF = €9 000S = €10 000n = 5r = 8%
NPV = €
5.Hard
years0123−40 00024 00021 50023 000

A project costs €40 000 and returns €24 000, €21 500, €23 000 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 8%. Find the modified internal rate of return MIRR in percent.

r = 8%CF0 = −40 000CF1 = 24 000CF2 = 21 500CF3 = 23 000
MIRR = %
6.Hard
years012−25 00011 50017 500

A project costs €25 000 and returns €11 500, €17 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 11 500CF2 = 17 500
IRR = %

Answer key

  1. 1. PB = 3.52 years
  2. 2. NPV = 50408 €
  3. 3. NPV = −2387 €
  4. 4. NPV = 2740 €
  5. 5. MIRR = 22.88 %
  6. 6. IRR = 9.77 %

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