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
years0123456−20 0004 5004 5004 5004 5004 5004 500

A project costs €20 000 today and returns €4 500 at the end of each year for 6 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €20 000CF = €4 500n = 6r = 6%
PI =
2.Easy
years0123−80 00033 50033 50033 500

A project costs €80 000 today and returns €33 500 at the end of each year for 3 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −80 000CF1 = 33 500CF2 = 33 500CF3 = 33 500
NPV = €
3.Medium
years0123−30 0008 00011 0009 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €8 000, €11 000, €9 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −30 000CF1 = 8 000CF2 = 11 000CF3 = 9 000
NPV = €
4.Medium
years01234−20 0009 0006 0009 0009 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €9 000, €6 000, €9 000, €9 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 9 000CF2 = 6 000CF3 = 9 000CF4 = 9 000
NPV = €
5.Hard
years012−25 00015 00014 500

A project costs €25 000 and returns €15 000, €14 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 15 000CF2 = 14 500
IRR = %
6.Hard
years012−50 00027 00030 000

A project costs €50 000 and returns €27 000, €30 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 27 000CF2 = 30 000
IRR = %

Answer key

  1. 1. PI = 1.106
  2. 2. NPV = 11229 €
  3. 3. NPV = −5106 €
  4. 4. NPV = 7865 €
  5. 5. IRR = 11.85 %
  6. 6. IRR = 9.03 %

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