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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years0123−10 0005 0005 0005 000

A project costs €10 000 today and returns €5 000 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −10 000CF1 = 5 000CF2 = 5 000CF3 = 5 000
NPV = €
2.Easy
years012345−40 00013 00013 00013 00013 00013 000

A project costs €40 000 today and returns €13 000 at the end of each year for 5 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −40 000CF1 = 13 000CF2 = 13 000CF3 = 13 000CF4 = 13 000CF5 = 13 000
NPV = €
3.Medium
years01234−20 0004 0007 0009 0005 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €4 000, €7 000, €9 000, €5 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −20 000CF1 = 4 000CF2 = 7 000CF3 = 9 000CF4 = 5 000
NPV = €
4.Medium
years01234−100 00027 00027 00027 00052 000

A machine costs €100 000 today. It generates €27 000 at the end of each year for 4 years and can then be sold for €25 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €100 000CF = €27 000S = €25 000n = 4r = 12%
NPV = €
5.Hard
years012345−25 0006 5006 5006 5006 5006 500

An investment of €25 000 returns €6 500 at the end of each year for 5 years. Find its internal rate of return IRR in percent.

C0 = €25 000CF = €6 500n = 5
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, €8 000. 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, 8 000
r* = %

Answer key

  1. 1. NPV = 3365 €
  2. 2. NPV = 11905 €
  3. 3. NPV = −401.6 €
  4. 4. NPV = −2104 €
  5. 5. IRR = 9.435 %
  6. 6. r* = 5.886 %

Full step-by-step solutions: practise this topic on examproblems.com.