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
years0123…8−50 0009 5009 5009 5009 500

A project costs €50 000 today and returns €9 500 at the end of each year for 8 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €50 000CF = €9 500n = 8r = 10%
PI =
2.Easy
years012345−80 00024 00024 00024 00024 00024 000

A project costs €80 000 today and returns €24 000 at the end of each year for 5 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €80 000CF = €24 000n = 5r = 10%
PI =
3.Medium
years01234567−30 0005 5005 5005 5005 5005 5005 50010 000

A machine costs €30 000 today. It generates €5 500 at the end of each year for 7 years and can then be sold for €4 500. The cost of capital is 8%. Find the net present value NPV.

C0 = €30 000CF = €5 500S = €4 500n = 7r = 8%
NPV = €
4.Medium
years01234−20 0007 0007 0007 0007 000

A project costs €20 000 today and returns €7 000 at the end of each year for 4 years. The cost of capital is 12%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 12%CF0 = −20 000CF1 = 7 000CF2 = 7 000CF3 = 7 000CF4 = 7 000
DPB = years
5.Hard
years0123−10 0003 5004 0003 500

A project costs €10 000 and returns €3 500, €4 000, €3 500 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 = −10 000CF1 = 3 500CF2 = 4 000CF3 = 3 500
MIRR = %
6.Hard
years0123−40 00015 00019 00023 500

A project costs €40 000 and returns €15 000, €19 000, €23 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 15 000CF2 = 19 000CF3 = 23 500
IRR = %

Answer key

  1. 1. PI = 1.014
  2. 2. PI = 1.137
  3. 3. NPV = 1261 €
  4. 4. DPB = 3.716 years
  5. 5. MIRR = 5.977 %
  6. 6. IRR = 18.95 %

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