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…8−25 0004 0004 0004 0004 000

A project costs €25 000 today and returns €4 000 at the end of each year for 8 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €25 000CF = €4 000n = 8r = 5%
PI =
2.Easy
years0123−20 00010 50010 50010 500

A project costs €20 000 today and returns €10 500 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 = −20 000CF1 = 10 500CF2 = 10 500CF3 = 10 500
NPV = €
3.Medium
years01234567€40 000€3 000€3 000€3 000€3 000€3 000€3 000€3 000r = 10%, EAC = ?

A machine costs €40 000 today, lasts 7 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.

C0 = €40 000M = €3 000n = 7r = 10%
EAC = €
4.Medium
years0123…9€20 000€4 000€4 000€4 000€4 000r = 8%, EAC = ?

A machine costs €20 000 today, lasts 9 years and costs €4 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €20 000M = €4 000n = 9r = 8%
EAC = €
5.Hard
years0123−20 00010 50012 00012 000

A project costs €20 000 and returns €10 500, €12 000, €12 000 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 6%. Find the modified internal rate of return MIRR in percent.

r = 6%CF0 = −20 000CF1 = 10 500CF2 = 12 000CF3 = 12 000
MIRR = %
6.Hard
years0123−25 00015 00017 50017 500

A project costs €25 000 and returns €15 000, €17 500, €17 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 15 000CF2 = 17 500CF3 = 17 500
IRR = %

Answer key

  1. 1. PI = 1.034
  2. 2. NPV = 8594 €
  3. 3. EAC = 11216 €
  4. 4. EAC = 7202 €
  5. 5. MIRR = 22.22 %
  6. 6. IRR = 43.1 %

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