A project costs €40 000 today and returns €19 500 at the end of each year for 3 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 €13 000 at the end of each year for 3 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.
An investment of €60 000 gives these cash flows at the end of years 1 to 3: €19 000, €26 000, €16 000. The cost of capital is 8%. Find the net present value NPV.
An investment of €20 000 gives these cash flows at the end of years 1 to 3: €7 000, €9 000, €9 000. The cost of capital is 10%. Find the net present value NPV.
A project costs €50 000 and returns €29 000, €33 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
A project costs €50 000 and returns €32 000, €37 500, €18 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 8494 €
- 2. NPV = 9116 €
- 3. NPV = −7415 €
- 4. NPV = 563.5 €
- 5. IRR = 15.84 %
- 6. IRR = 37.55 %
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