A project costs €80 000 today and returns €30 500 at the end of each year for 4 years. The required rate of return is 10%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €25 000 today and returns €12 500 at the end of each year for 3 years. The required rate of return is 9%. Find the net present value NPV.
An investment of €20 000 gives these cash flows at the end of years 1 to 4: €6 000, €6 000, €4 000, €5 000. The cost of capital is 10%. Find the net present value NPV.
An investment of €30 000 gives these cash flows at the end of years 1 to 3: €14 000, €12 000, €12 000. The cost of capital is 9%. Find the net present value NPV.
A project costs €40 000 and returns €23 500, €23 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
A project costs €10 000 and returns €5 000, €5 500, €4 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 16681 €
- 2. NPV = 6641 €
- 3. NPV = −3166 €
- 4. NPV = 2210 €
- 5. IRR = 11.46 %
- 6. IRR = 23.79 %
Full step-by-step solutions: practise this topic on examproblems.com.