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
years0123456−50 00011 50011 50011 50011 50011 50011 500

A project costs €50 000 today and returns €11 500 at the end of each year for 6 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €50 000CF = €11 500n = 6r = 10%
PI =
2.Easy
years0123? 6 0008 0008 000

A machine is expected to save €6 000, €8 000, €8 000 at the end of years 1 to 3, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 6 000CF2 = 8 000CF3 = 8 000
PV = €
3.Medium
years01234−60 00025 00021 00018 00013 000

An investment of €60 000 gives these cash flows at the end of years 1 to 4: €25 000, €21 000, €18 000, €13 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −60 000CF1 = 25 000CF2 = 21 000CF3 = 18 000CF4 = 13 000
NPV = €
4.Medium
years0123…9−400 00031 000+2%+2%…r = 9%, NPV = ?

A project costs €400 000 today. It generates €31 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €400 000CF1 = €31 000g = 2%r = 9%
NPV = €
5.Hard
years0123−25 00016 50012 00015 000

A project costs €25 000 and returns €16 500, €12 000, €15 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 16 500CF2 = 12 000CF3 = 15 000
IRR = %
6.Hard
years012−40 00026 00029 000

A project costs €40 000 and returns €26 000, €29 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 26 000CF2 = 29 000
IRR = %

Answer key

  1. 1. PI = 1.002
  2. 2. PV = 18765 €
  3. 3. NPV = 9101 €
  4. 4. NPV = 42857 €
  5. 5. IRR = 34.7 %
  6. 6. IRR = 23.64 %

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