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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years0123? 20 00025 00025 000

A machine is expected to save €20 000, €25 000, €25 000 at the end of years 1 to 3, after which it is worthless. The required return is 10%. What is the most the company should pay for the machine today? Find PV.

r = 10%CF1 = 20 000CF2 = 25 000CF3 = 25 000
PV = €
2.Easy
years012345−30 0006 5006 00010 0009 00010 000

A project costs €30 000 today and returns €6 500, €6 000, €10 000, €9 000, €10 000 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −30 000CF1 = 6 500CF2 = 6 000CF3 = 10 000CF4 = 9 000CF5 = 10 000
PB = years
3.Medium
years0123−60 00020 00023 00024 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €20 000, €23 000, €24 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −60 000CF1 = 20 000CF2 = 23 000CF3 = 24 000
NPV = €
4.Medium
years012345−50 00021 00015 50020 50012 00013 500

A project costs €50 000 today and returns €21 000, €15 500, €20 500, €12 000, €13 500 at the end of years 1 to 5. 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 = −50 000CF1 = 21 000CF2 = 15 500CF3 = 20 500CF4 = 12 000CF5 = 13 500
DPB = years
5.Hard
years0123−40 00014 50029 50025 000

A project costs €40 000 and returns €14 500, €29 500, €25 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 14 500CF2 = 29 500CF3 = 25 000
IRR = %
6.Hard
years012−50 00019 00037 000

A project costs €50 000 and returns €19 000, €37 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 19 000CF2 = 37 000
IRR = %

Answer key

  1. 1. PV = 57626 €
  2. 2. PB = 3.833 years
  3. 3. NPV = −4778 €
  4. 4. DPB = 2.9 years
  5. 5. IRR = 29.98 %
  6. 6. IRR = 7.097 %

Full step-by-step solutions: practise this topic on examproblems.com.