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

A machine is expected to save €18 000, €20 000, €5 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF₁ = 18 000CF₂ = 20 000CF₃ = 5 000

PV = €

2.Easy

A project costs €50 000 today and returns €28 000 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 = −50 000CF₁ = 28 000CF₂ = 28 000CF₃ = 28 000

NPV = €

3.Medium

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €17 000, €17 000, €18 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF₀ = −45 000CF₁ = 17 000CF₂ = 17 000CF₃ = 18 000

NPV = €

4.Medium

A project costs €400 000 today. It generates €38 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 11%. Find the net present value NPV.

C₀ = €400 000CF₁ = €38 000g = 3%r = 11%

NPV = €

5.Hard

A project costs €25 000 and returns €17 500, €11 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −25 000CF₁ = 17 500CF₂ = 11 500

IRR = %

6.Hard

A project costs €40 000 and returns €20 000, €26 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF₀ = −40 000CF₁ = 20 000CF₂ = 26 000

IRR = %

Answer key

1. PV = 38979 €
2. NPV = 13930 €
3. NPV = −3457 €
4. NPV = 75000 €
5. IRR = 11.32 %
6. IRR = 9.41 %

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