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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1.Easy

A machine is expected to save €6 000, €18 000, €12 000 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 = 18 000CF₃ = 12 000

PV = €

2.Easy

A project costs €10 000 today and returns €2 500 at the end of each year for 5 years. The required rate of return is 8%. Find the profitability index PI.

C₀ = €10 000CF = €2 500n = 5r = 8%

PI =

3.Medium

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €8 000, €6 000, €10 000, €4 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF₀ = −20 000CF₁ = 8 000CF₂ = 6 000CF₃ = 10 000CF₄ = 4 000

NPV = €

4.Medium

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €17 000, €30 000, €25 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF₀ = −60 000CF₁ = 17 000CF₂ = 30 000CF₃ = 25 000

NPV = €

5.Hard

A project costs €40 000 and returns €27 000, €27 000, €23 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF₀ = −40 000CF₁ = 27 000CF₂ = 27 000CF₃ = 23 000

IRR = %

6.Hard

A project costs €25 000 and returns €17 000, €18 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −25 000CF₁ = 17 000CF₂ = 18 500

IRR = %

Answer key

1. PV = 30514 €
2. PI = 0.9982
3. NPV = 3430 €
4. NPV = −969.2 €
5. IRR = 42.9 %
6. IRR = 26.5 %

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