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
years0123−80 00033 50033 50033 500

A project costs €80 000 today and returns €33 500 at the end of each year for 3 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −80 000CF1 = 33 500CF2 = 33 500CF3 = 33 500
NPV = €
2.Easy
years01234−10 0003 5003 5003 5003 500

A project costs €10 000 today and returns €3 500 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −10 000CF1 = 3 500CF2 = 3 500CF3 = 3 500CF4 = 3 500
NPV = €
3.Medium
years01234567€60 000€5 000€5 000€5 000€5 000€5 000€5 000€5 000r = 5%, EAC = ?

A machine costs €60 000 today, lasts 7 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 5%. Find its equivalent annual cost EAC.

C0 = €60 000M = €5 000n = 7r = 5%
EAC = €
4.Medium
years01234−45 00019 00019 00010 00010 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €19 000, €19 000, €10 000, €10 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −45 000CF1 = 19 000CF2 = 19 000CF3 = 10 000CF4 = 10 000
NPV = €
5.Hard
years01234567−80 00018 00018 00018 00018 00018 00018 00018 000

An investment of €80 000 returns €18 000 at the end of each year for 7 years. Find its internal rate of return IRR in percent.

C0 = €80 000CF = €18 000n = 7
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €5 500, €4 000, €2 500 at the end of years 1 to 3. Project B costs €15 000 and returns €4 000, €6 000, €8 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 5 500, 4 000, 2 500B: −15 000, 4 000, 6 000, 8 500
r* = %

Answer key

  1. 1. NPV = −3512 €
  2. 2. NPV = 1855 €
  3. 3. EAC = 15369 €
  4. 4. NPV = 7194 €
  5. 5. IRR = 12.84 %
  6. 6. r* = 8.594 %

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