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
years01234−100 00031 00032 50024 50027 000

A project costs €100 000 today and returns €31 000, €32 500, €24 500, €27 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −100 000CF1 = 31 000CF2 = 32 500CF3 = 24 500CF4 = 27 000
PB = years
2.Easy
years0123−80 00041 50041 50041 500

A project costs €80 000 today and returns €41 500 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −80 000CF1 = 41 500CF2 = 41 500CF3 = 41 500
NPV = €
3.Medium
years01234567€20 000€2 000€2 000€2 000€2 000€2 000€2 000€2 000r = 12%, EAC = ?

A machine costs €20 000 today, lasts 7 years and costs €2 000 per year to run (paid at the end of each year). The cost of capital is 12%. Find its equivalent annual cost EAC.

C0 = €20 000M = €2 000n = 7r = 12%
EAC = €
4.Medium
years0123…9−500 00024 000+3%+3%…r = 9%, NPV = ?

A project costs €500 000 today. It generates €24 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €500 000CF1 = €24 000g = 3%r = 9%
NPV = €
5.Hard
years0123−20 0007 00010 50011 500

A project costs €20 000 and returns €7 000, €10 500, €11 500 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 12%. Find the modified internal rate of return MIRR in percent.

r = 12%CF0 = −20 000CF1 = 7 000CF2 = 10 500CF3 = 11 500
MIRR = %
6.Hard
years0123−25 00010 50012 00013 500

A project costs €25 000 and returns €10 500, €12 000, €13 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 10 500CF2 = 12 000CF3 = 13 500
IRR = %

Answer key

  1. 1. PB = 3.444 years
  2. 2. NPV = 30930 €
  3. 3. EAC = 6382 €
  4. 4. NPV = −100000 €
  5. 5. MIRR = 17.01 %
  6. 6. IRR = 19.75 %

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