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
years0123−20 00010 50010 50010 500

A project costs €20 000 today and returns €10 500 at the end of each year for 3 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −20 000CF1 = 10 500CF2 = 10 500CF3 = 10 500
NPV = €
2.Easy
years012345−50 00013 00018 50011 00016 50016 500

A project costs €50 000 today and returns €13 000, €18 500, €11 000, €16 500, €16 500 at the end of years 1 to 5. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 13 000CF2 = 18 500CF3 = 11 000CF4 = 16 500CF5 = 16 500
PB = years
3.Medium
years0123…9−200 00020 000+1%+1%…r = 12%, NPV = ?

A project costs €200 000 today. It generates €20 000 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 = €20 000g = 1%r = 12%
NPV = €
4.Medium
years0123−45 00017 00018 00011 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €17 000, €18 000, €11 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −45 000CF1 = 17 000CF2 = 18 000CF3 = 11 000
NPV = €
5.Hard
years0123…10−100 0009 000+5%+5%+5%r = 8%, NPV = ?

A project costs €100 000 today. Its cash flow is €9 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 10. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF1 = €9 000g = 5%n = 10r = 8%
NPV = €
6.Hard
years012−40 00030 00024 500

A project costs €40 000 and returns €30 000, €24 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 30 000CF2 = 24 500
IRR = %

Answer key

  1. 1. NPV = 3974 €
  2. 2. PB = 3.455 years
  3. 3. NPV = −18182 €
  4. 4. NPV = −7642 €
  5. 5. NPV = −26348 €
  6. 6. IRR = 24.28 %

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