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? 8 0005 00025 000

A machine is expected to save €8 000, €5 000, €25 000 at the end of years 1 to 3, after which it is worthless. The required return is 9%. What is the most the company should pay for the machine today? Find PV.

r = 9%CF1 = 8 000CF2 = 5 000CF3 = 25 000
PV = €
2.Easy
years01234−100 00041 00041 00041 00041 000

A project costs €100 000 today and returns €41 000 at the end of each year for 4 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −100 000CF1 = 41 000CF2 = 41 000CF3 = 41 000CF4 = 41 000
NPV = €
3.Medium
years01234−30 00014 0007 00015 00013 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €14 000, €7 000, €15 000, €13 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −30 000CF1 = 14 000CF2 = 7 000CF3 = 15 000CF4 = 13 000
NPV = €
4.Medium
years01234567€20 000€3 000€3 000€3 000€3 000€3 000€3 000€3 000r = 12%, EAC = ?

A machine costs €20 000 today, lasts 7 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 12%. Find its equivalent annual cost EAC.

C0 = €20 000M = €3 000n = 7r = 12%
EAC = €
5.Hard
years01234−150 00034 000+5%+5%+5%r = 8%, NPV = ?

A project costs €150 000 today. Its cash flow is €34 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 4. The cost of capital is 8%. Find the net present value NPV.

C0 = €150 000CF1 = €34 000g = 5%n = 4r = 8%
NPV = €
6.Hard
years0123−20 00012 00012 0009 000

A project costs €20 000 and returns €12 000, €12 000, €9 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 12 000CF2 = 12 000CF3 = 9 000
IRR = %

Answer key

  1. 1. PV = 30852 €
  2. 2. NPV = 24531 €
  3. 3. NPV = 11360 €
  4. 4. EAC = 7382 €
  5. 5. NPV = −29224 €
  6. 6. IRR = 31.59 %

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