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 0008 0005 000

A machine is expected to save €20 000, €8 000, €5 000 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 = 8 000CF3 = 5 000
PV = €
2.Easy
years0123−50 00026 00026 00026 000

A project costs €50 000 today and returns €26 000 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 = −50 000CF1 = 26 000CF2 = 26 000CF3 = 26 000
NPV = €
3.Medium
years01234−75 00026 00036 00022 00029 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €26 000, €36 000, €22 000, €29 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −75 000CF1 = 26 000CF2 = 36 000CF3 = 22 000CF4 = 29 000
NPV = €
4.Medium
years01234−30 0009 0008 00012 00013 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €9 000, €8 000, €12 000, €13 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −30 000CF1 = 9 000CF2 = 8 000CF3 = 12 000CF4 = 13 000
NPV = €
5.Hard
years0123−10 0003 5004 0007 000

A project costs €10 000 and returns €3 500, €4 000, €7 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 3 500CF2 = 4 000CF3 = 7 000
IRR = %
6.Hard
years0123…10−80 0009 500+3%+3%+3%r = 8%, NPV = ?

A project costs €80 000 today. Its cash flow is €9 500 at the end of year 1 and grows by 3% 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 = €80 000CF1 = €9 500g = 3%n = 10r = 8%
NPV = €

Answer key

  1. 1. PV = 28550 €
  2. 2. NPV = 19498 €
  3. 3. NPV = 14725 €
  4. 4. NPV = 4273 €
  5. 5. IRR = 18.55 %
  6. 6. NPV = −8274 €

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