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
years0123456−80 00015 50016 50018 50031 50028 50016 000

A project costs €80 000 today and returns €15 500, €16 500, €18 500, €31 500, €28 500, €16 000 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −80 000CF1 = 15 500CF2 = 16 500CF3 = 18 500CF4 = 31 500CF5 = 28 500CF6 = 16 000
PB = years
2.Easy
years0123456−50 00011 50015 50019 50017 50018 00017 500

A project costs €50 000 today and returns €11 500, €15 500, €19 500, €17 500, €18 000, €17 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 11 500CF2 = 15 500CF3 = 19 500CF4 = 17 500CF5 = 18 000CF6 = 17 500
PB = years
3.Medium
years0123…9−200 00021 000+4%+4%…r = 12%, NPV = ?

A project costs €200 000 today. It generates €21 000 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 = €200 000CF1 = €21 000g = 4%r = 12%
NPV = €
4.Medium
years0123−50 00017 50017 50030 000

A machine costs €50 000 today. It generates €17 500 at the end of each year for 3 years and can then be sold for €12 500. The cost of capital is 10%. Find the net present value NPV.

C0 = €50 000CF = €17 500S = €12 500n = 3r = 10%
NPV = €
5.Hard
years0123−20 0009 50010 0007 500

A project costs €20 000 and returns €9 500, €10 000, €7 500 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 8%. Find the modified internal rate of return MIRR in percent.

r = 8%CF0 = −20 000CF1 = 9 500CF2 = 10 000CF3 = 7 500
MIRR = %
6.Hard
years0123−10 0004 0005 0005 000

A project costs €10 000 and returns €4 000, €5 000, €5 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 4 000CF2 = 5 000CF3 = 5 000
IRR = %

Answer key

  1. 1. PB = 3.937 years
  2. 2. PB = 3.2 years
  3. 3. NPV = 62500 €
  4. 4. NPV = 2911 €
  5. 5. MIRR = 13.68 %
  6. 6. IRR = 18.14 %

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