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
years01234−10 0003 5003 5003 5003 500

A project costs €10 000 today and returns €3 500 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −10 000CF1 = 3 500CF2 = 3 500CF3 = 3 500CF4 = 3 500
NPV = €
2.Easy
years01234? 6 00025 00012 00012 000

A machine is expected to save €6 000, €25 000, €12 000, €12 000 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 = 25 000CF3 = 12 000CF4 = 12 000
PV = €
3.Medium
years0123456−40 0009 0009 0009 0009 0009 00017 000

A machine costs €40 000 today. It generates €9 000 at the end of each year for 6 years and can then be sold for €8 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €40 000CF = €9 000S = €8 000n = 6r = 8%
NPV = €
4.Medium
years012345−30 00010 00010 00010 00010 00010 000

A project costs €30 000 today and returns €10 000 at the end of each year for 5 years. The cost of capital is 10%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 10%CF0 = −30 000CF1 = 10 000CF2 = 10 000CF3 = 10 000CF4 = 10 000CF5 = 10 000
DPB = years
5.Hard
years0123−10 0004 0003 5003 500

A project costs €10 000 and returns €4 000, €3 500, €3 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 4 000CF2 = 3 500CF3 = 3 500
IRR = %
6.Hard
years0123−40 00023 00020 00021 500

A project costs €40 000 and returns €23 000, €20 000, €21 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 23 000CF2 = 20 000CF3 = 21 500
IRR = %

Answer key

  1. 1. NPV = 2411 €
  2. 2. PV = 41455 €
  3. 3. NPV = 6647 €
  4. 4. DPB = 3.751 years
  5. 5. IRR = 5.041 %
  6. 6. IRR = 28.76 %

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