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
years0123−40 00017 50017 50017 500

A project costs €40 000 today and returns €17 500 at the end of each year for 3 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €40 000CF = €17 500n = 3r = 5%
PI =
2.Easy
years0123−20 0008 5008 5008 500

A project costs €20 000 today and returns €8 500 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −20 000CF1 = 8 500CF2 = 8 500CF3 = 8 500
NPV = €
3.Medium
years0123−20 0005 0004 0005 000

An investment of €20 000 gives these cash flows at the end of years 1 to 3: €5 000, €4 000, €5 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 5 000CF2 = 4 000CF3 = 5 000
NPV = €
4.Medium
years012345−60 00020 50016 00023 50025 00020 500

A project costs €60 000 today and returns €20 500, €16 000, €23 500, €25 000, €20 500 at the end of years 1 to 5. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −60 000CF1 = 20 500CF2 = 16 000CF3 = 23 500CF4 = 25 000CF5 = 20 500
DPB = years
5.Hard
years0123…8−25 0005 5005 5005 5005 500

An investment of €25 000 returns €5 500 at the end of each year for 8 years. Find its internal rate of return IRR in percent.

C0 = €25 000CF = €5 500n = 8
IRR = %
6.Hard
years01234−200 00050 000+5%+5%+5%r = 8%, NPV = ?

A project costs €200 000 today. Its cash flow is €50 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 4. The cost of capital is 8%. Find the net present value NPV.

C0 = €200 000CF1 = €50 000g = 5%n = 4r = 8%
NPV = €

Answer key

  1. 1. PI = 1.191
  2. 2. NPV = 2721 €
  3. 3. NPV = −7752 €
  4. 4. DPB = 3.275 years
  5. 5. IRR = 14.61 %
  6. 6. NPV = −22389 €

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