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
years01234−25 0007 0007 0007 0007 000

A project costs €25 000 today and returns €7 000 at the end of each year for 4 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €25 000CF = €7 000n = 4r = 10%
PI =
2.Easy
years01234−10 0005 0005 0005 0005 000

A project costs €10 000 today and returns €5 000 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −10 000CF1 = 5 000CF2 = 5 000CF3 = 5 000CF4 = 5 000
NPV = €
3.Medium
years0123…9€50 000€5 000€5 000€5 000€5 000r = 6%, EAC = ?

A machine costs €50 000 today, lasts 9 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 6%. Find its equivalent annual cost EAC.

C0 = €50 000M = €5 000n = 9r = 6%
EAC = €
4.Medium
years0123−30 0009 0008 0006 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €9 000, €8 000, €6 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −30 000CF1 = 9 000CF2 = 8 000CF3 = 6 000
NPV = €
5.Hard
years0123−40 00023 00021 00022 000

A project costs €40 000 and returns €23 000, €21 000, €22 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 23 000CF2 = 21 000CF3 = 22 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €30 000 and returns €17 000, €12 000, €7 000 at the end of years 1 to 3. Project B costs €40 000 and returns €10 000, €16 500, €21 000. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −30 000, 17 000, 12 000, 7 000B: −40 000, 10 000, 16 500, 21 000
r* = %

Answer key

  1. 1. PI = 0.8876
  2. 2. NPV = 7730 €
  3. 3. EAC = 12351 €
  4. 4. NPV = −8989 €
  5. 5. IRR = 30.24 %
  6. 6. r* = 3.67 %

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