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
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 12%. Find the net present value NPV.

r = 12%CF0 = −25 000CF1 = 6 500CF2 = 6 500CF3 = 6 500CF4 = 6 500CF5 = 6 500
NPV = €
2.Easy
years0123456−50 00010 00011 5008 00010 00013 00013 000

A project costs €50 000 today and returns €10 000, €11 500, €8 000, €10 000, €13 000, €13 000 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 = 10 000CF2 = 11 500CF3 = 8 000CF4 = 10 000CF5 = 13 000CF6 = 13 000
PB = years
3.Medium
years01234−30 0009 0009 00011 50012 000

A project costs €30 000 today and returns €9 000, €9 000, €11 500, €12 000 at the end of years 1 to 4. 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 = 9 000CF2 = 9 000CF3 = 11 500CF4 = 12 000
DPB = years
4.Medium
years0123…10€50 000€5 000€5 000€5 000€5 000r = 8%, EAC = ?

A machine costs €50 000 today, lasts 10 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €50 000M = €5 000n = 10r = 8%
EAC = €
5.Hard
years0123−20 0007 5007 5007 500

An investment of €20 000 returns €7 500 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €20 000CF = €7 500n = 3
IRR = %
6.Hard
years012−50 00029 50024 500

A project costs €50 000 and returns €29 500, €24 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 29 500CF2 = 24 500
IRR = %

Answer key

  1. 1. NPV = −1569 €
  2. 2. PB = 4.808 years
  3. 3. DPB = 3.7 years
  4. 4. EAC = 12451 €
  5. 5. IRR = 6.129 %
  6. 6. IRR = 5.462 %

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