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
years012345−40 00014 50014 50014 50014 50014 500

A project costs €40 000 today and returns €14 500 at the end of each year for 5 years. The required rate of return is 12%. Find the net present value NPV.

r = 12%CF0 = −40 000CF1 = 14 500CF2 = 14 500CF3 = 14 500CF4 = 14 500CF5 = 14 500
NPV = €
2.Easy
years012345−25 0006 0006 0006 0006 0006 000

A project costs €25 000 today and returns €6 000 at the end of each year for 5 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €25 000CF = €6 000n = 5r = 5%
PI =
3.Medium
years0123456−100 00020 50020 50020 50020 50020 50040 500

A machine costs €100 000 today. It generates €20 500 at the end of each year for 6 years and can then be sold for €20 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF = €20 500S = €20 000n = 6r = 8%
NPV = €
4.Medium
years0123456−80 00018 00018 00018 00018 00018 00034 000

A machine costs €80 000 today. It generates €18 000 at the end of each year for 6 years and can then be sold for €16 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €80 000CF = €18 000S = €16 000n = 6r = 12%
NPV = €
5.Hard
years0123−40 00028 50015 50017 500

A project costs €40 000 and returns €28 500, €15 500, €17 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 28 500CF2 = 15 500CF3 = 17 500
IRR = %
6.Hard
years01234−50 00015 50021 50022 50026 500

A project costs €50 000 and returns €15 500, €21 500, €22 500, €26 500 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 10%. Find the modified internal rate of return MIRR in percent.

r = 10%CF0 = −50 000CF1 = 15 500CF2 = 21 500CF3 = 22 500CF4 = 26 500
MIRR = %

Answer key

  1. 1. NPV = 12269 €
  2. 2. PI = 1.039
  3. 3. NPV = 7372 €
  4. 4. NPV = 2111 €
  5. 5. IRR = 28.14 %
  6. 6. MIRR = 18.29 %

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