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
years0123456−10 0002 5002 5002 5002 5002 5002 500

A project costs €10 000 today and returns €2 500 at the end of each year for 6 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €10 000CF = €2 500n = 6r = 6%
PI =
2.Easy
years012345−20 0006 0007 0006 5003 5007 000

A project costs €20 000 today and returns €6 000, €7 000, €6 500, €3 500, €7 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −20 000CF1 = 6 000CF2 = 7 000CF3 = 6 500CF4 = 3 500CF5 = 7 000
PB = years
3.Medium
years01234−20 00010 0007 0009 00010 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €10 000, €7 000, €9 000, €10 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 10 000CF2 = 7 000CF3 = 9 000CF4 = 10 000
NPV = €
4.Medium
years012345−20 0007 0007 0007 0007 0007 000

A project costs €20 000 today and returns €7 000 at the end of each year for 5 years. 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 = −20 000CF1 = 7 000CF2 = 7 000CF3 = 7 000CF4 = 7 000CF5 = 7 000
DPB = years
5.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 500, €12 000, €6 500 at the end of years 1 to 3. Project B costs €40 000 and returns €12 000, €16 000, €21 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 500, 12 000, 6 500B: −40 000, 12 000, 16 000, 21 500
r* = %
6.Hard
years0123−20 0006 0008 50011 500

A project costs €20 000 and returns €6 000, €8 500, €11 500 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 = −20 000CF1 = 6 000CF2 = 8 500CF3 = 11 500
MIRR = %

Answer key

  1. 1. PI = 1.229
  2. 2. PB = 3.143 years
  3. 3. NPV = 10435 €
  4. 4. DPB = 3.163 years
  5. 5. r* = 8.713 %
  6. 6. MIRR = 11.44 %

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