A project costs €10 000 today and returns €4 000 at the end of each year for 5 years. The required rate of return is 10%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €10 000 today and returns €3 000 at the end of each year for 5 years. The required rate of return is 10%. Find the net present value NPV.
A project costs €100 000 today. It generates €10 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 12%. Find the net present value NPV.
A project costs €250 000 today. It generates €20 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 10%. Find the net present value NPV.
An investment of €50 000 returns €9 000 at the end of each year for 7 years. Find its internal rate of return IRR in percent.
A project costs €10 000 and returns €5 000, €7 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 5163 €
- 2. NPV = 1372 €
- 3. NPV = 25000 €
- 4. NPV = −27778 €
- 5. IRR = 6.136 %
- 6. IRR = 12.32 %
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