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
years0123−80 00041 50041 50041 500

A project costs €80 000 today and returns €41 500 at the end of each year for 3 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −80 000CF1 = 41 500CF2 = 41 500CF3 = 41 500
NPV = €
2.Easy
years01234−50 00024 00024 00024 00024 000

A project costs €50 000 today and returns €24 000 at the end of each year for 4 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −50 000CF1 = 24 000CF2 = 24 000CF3 = 24 000CF4 = 24 000
NPV = €
3.Medium
years012345−60 00015 00017 50027 00020 00023 500

A project costs €60 000 today and returns €15 000, €17 500, €27 000, €20 000, €23 500 at the end of years 1 to 5. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −60 000CF1 = 15 000CF2 = 17 500CF3 = 27 000CF4 = 20 000CF5 = 23 500
DPB = years
4.Medium
years0123456€50 000€4 000€4 000€4 000€4 000€4 000€4 000r = 10%, EAC = ?

A machine costs €50 000 today, lasts 6 years and costs €4 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.

C0 = €50 000M = €4 000n = 6r = 10%
EAC = €
5.Hard
years0123−40 00016 00017 00014 500

A project costs €40 000 and returns €16 000, €17 000, €14 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 16 000CF2 = 17 000CF3 = 14 500
IRR = %
6.Hard
years0123−50 00030 50021 00028 500

A project costs €50 000 and returns €30 500, €21 000, €28 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 30 500CF2 = 21 000CF3 = 28 500
IRR = %

Answer key

  1. 1. NPV = 19676 €
  2. 2. NPV = 29491 €
  3. 3. DPB = 3.396 years
  4. 4. EAC = 15480 €
  5. 5. IRR = 9.262 %
  6. 6. IRR = 28.34 %

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