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? 6 00010 00012 00018 000

A machine is expected to save €6 000, €10 000, €12 000, €18 000 at the end of years 1 to 4, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.

r = 12%CF1 = 6 000CF2 = 10 000CF3 = 12 000CF4 = 18 000
PV = €
2.Easy
years0123456−40 0006 50013 00012 50012 00012 00015 000

A project costs €40 000 today and returns €6 500, €13 000, €12 500, €12 000, €12 000, €15 000 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 = 6 500CF2 = 13 000CF3 = 12 500CF4 = 12 000CF5 = 12 000CF6 = 15 000
PB = years
3.Medium
years012345−50 00015 50015 50015 50015 50015 500

A project costs €50 000 today and returns €15 500 at the end of each year for 5 years. The cost of capital is 12%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 12%CF0 = −50 000CF1 = 15 500CF2 = 15 500CF3 = 15 500CF4 = 15 500CF5 = 15 500
DPB = years
4.Medium
years0123−60 00013 00014 00023 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €13 000, €14 000, €23 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −60 000CF1 = 13 000CF2 = 14 000CF3 = 23 000
NPV = €
5.Hard
years0123−25 00010 00010 00010 000

An investment of €25 000 returns €10 000 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €25 000CF = €10 000n = 3
IRR = %
6.Hard
years012345−50 00011 000+2%+2%+2%+2%r = 12%, NPV = ?

A project costs €50 000 today. Its cash flow is €11 000 at the end of year 1 and grows by 2% per year until the last cash flow at the end of year 5. The cost of capital is 12%. Find the net present value NPV.

C0 = €50 000CF1 = €11 000g = 2%n = 5r = 12%
NPV = €

Answer key

  1. 1. PV = 33310 €
  2. 2. PB = 3.667 years
  3. 3. DPB = 4.332 years
  4. 4. NPV = −16847 €
  5. 5. IRR = 9.701 %
  6. 6. NPV = −8913 €

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