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? 12 00012 0005 00015 000

A machine is expected to save €12 000, €12 000, €5 000, €15 000 at the end of years 1 to 4, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 12 000CF2 = 12 000CF3 = 5 000CF4 = 15 000
PV = €
2.Easy
years0123−40 00018 50018 50018 500

A project costs €40 000 today and returns €18 500 at the end of each year for 3 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −40 000CF1 = 18 500CF2 = 18 500CF3 = 18 500
NPV = €
3.Medium
years012345−60 00021 00021 00021 00021 00021 000

A project costs €60 000 today and returns €21 000 at the end of each year for 5 years. The cost of capital is 8%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 8%CF0 = −60 000CF1 = 21 000CF2 = 21 000CF3 = 21 000CF4 = 21 000CF5 = 21 000
DPB = years
4.Medium
years0123−45 00015 00016 00022 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €15 000, €16 000, €22 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −45 000CF1 = 15 000CF2 = 16 000CF3 = 22 000
NPV = €
5.Hard
years0123−10 0003 5006 5007 000

A project costs €10 000 and returns €3 500, €6 500, €7 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 3 500CF2 = 6 500CF3 = 7 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 500, €12 000, €7 000 at the end of years 1 to 3. Project B costs €32 000 and returns €10 000, €13 500, €17 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 500, 12 000, 7 000B: −32 000, 10 000, 13 500, 17 000
r* = %

Answer key

  1. 1. PV = 31372 €
  2. 2. NPV = 10380 €
  3. 3. DPB = 3.381 years
  4. 4. NPV = 952.3 €
  5. 5. IRR = 28.25 %
  6. 6. r* = 9.608 %

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