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
years0123−25 00013 00013 00013 000

A project costs €25 000 today and returns €13 000 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 = 13 000CF2 = 13 000CF3 = 13 000
NPV = €
2.Easy
years0123456−25 0005 5005 5005 5005 5005 5005 500

A project costs €25 000 today and returns €5 500 at the end of each year for 6 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €25 000CF = €5 500n = 6r = 8%
PI =
3.Medium
years0123…9−400 00048 000+1%+1%…r = 11%, NPV = ?

A project costs €400 000 today. It generates €48 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €400 000CF1 = €48 000g = 1%r = 11%
NPV = €
4.Medium
years0123…9−250 00016 000+4%+4%…r = 11%, NPV = ?

A project costs €250 000 today. It generates €16 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €250 000CF1 = €16 000g = 4%r = 11%
NPV = €
5.Hard
years0123−50 00020 50020 50020 500

An investment of €50 000 returns €20 500 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €50 000CF = €20 500n = 3
IRR = %
6.Hard
years0123−80 00038 00038 00038 000

An investment of €80 000 returns €38 000 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €80 000CF = €38 000n = 3
IRR = %

Answer key

  1. 1. NPV = 10402 €
  2. 2. PI = 1.017
  3. 3. NPV = 80000 €
  4. 4. NPV = −21429 €
  5. 5. IRR = 11.11 %
  6. 6. IRR = 20.04 %

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