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
years0123456−50 0009 50013 50011 00010 00019 50019 500

A project costs €50 000 today and returns €9 500, €13 500, €11 000, €10 000, €19 500, €19 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 9 500CF2 = 13 500CF3 = 11 000CF4 = 10 000CF5 = 19 500CF6 = 19 500
PB = years
2.Easy
years012345−25 0006 5006 5006 5006 5006 500

A project costs €25 000 today and returns €6 500 at the end of each year for 5 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −25 000CF1 = 6 500CF2 = 6 500CF3 = 6 500CF4 = 6 500CF5 = 6 500
NPV = €
3.Medium
years0123…9−200 00018 000+1%+1%…r = 12%, NPV = ?

A project costs €200 000 today. It generates €18 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 12%. Find the net present value NPV.

C0 = €200 000CF1 = €18 000g = 1%r = 12%
NPV = €
4.Medium
years0123…8€80 000€4 000€4 000€4 000€4 000r = 8%, EAC = ?

A machine costs €80 000 today, lasts 8 years and costs €4 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €80 000M = €4 000n = 8r = 8%
EAC = €
5.Hard
years01234−50 00018 50025 50025 50017 000

A project costs €50 000 and returns €18 500, €25 500, €25 500, €17 000 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 6%. Find the modified internal rate of return MIRR in percent.

r = 6%CF0 = −50 000CF1 = 18 500CF2 = 25 500CF3 = 25 500CF4 = 17 000
MIRR = %
6.Hard
years0123−40 00028 50016 50028 000

A project costs €40 000 and returns €28 500, €16 500, €28 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 28 500CF2 = 16 500CF3 = 28 000
IRR = %

Answer key

  1. 1. PB = 4.308 years
  2. 2. NPV = −3211 €
  3. 3. NPV = −36364 €
  4. 4. EAC = 17921 €
  5. 5. MIRR = 17.32 %
  6. 6. IRR = 37.94 %

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