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
years0123456−25 0005 0005 0005 0005 0005 0005 000

A project costs €25 000 today and returns €5 000 at the end of each year for 6 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €25 000CF = €5 000n = 6r = 12%
PI =
2.Easy
years01234−50 00017 00012 50014 00019 500

A project costs €50 000 today and returns €17 000, €12 500, €14 000, €19 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 17 000CF2 = 12 500CF3 = 14 000CF4 = 19 500
PB = years
3.Medium
years012345−40 0008 0008 0008 0008 00014 000

A machine costs €40 000 today. It generates €8 000 at the end of each year for 5 years and can then be sold for €6 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €40 000CF = €8 000S = €6 000n = 5r = 12%
NPV = €
4.Medium
years0123…9−250 00022 000+4%+4%…r = 12%, NPV = ?

A project costs €250 000 today. It generates €22 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 12%. Find the net present value NPV.

C0 = €250 000CF1 = €22 000g = 4%r = 12%
NPV = €
5.Hard
years0123−25 00017 50016 50012 000

A project costs €25 000 and returns €17 500, €16 500, €12 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 17 500CF2 = 16 500CF3 = 12 000
IRR = %
6.Hard
years0123−25 00017 00013 00010 000

A project costs €25 000 and returns €17 000, €13 000, €10 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 17 000CF2 = 13 000CF3 = 10 000
IRR = %

Answer key

  1. 1. PI = 0.8223
  2. 2. PB = 3.333 years
  3. 3. NPV = −7757 €
  4. 4. NPV = 25000 €
  5. 5. IRR = 40.97 %
  6. 6. IRR = 31 %

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