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
years0123456−50 00017 00015 50013 00015 50013 50013 500

A project costs €50 000 today and returns €17 000, €15 500, €13 000, €15 500, €13 500, €13 500 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 17 000CF2 = 15 500CF3 = 13 000CF4 = 15 500CF5 = 13 500CF6 = 13 500
PB = years
2.Easy
years01234−40 00015 50012 00015 5008 000

A project costs €40 000 today and returns €15 500, €12 000, €15 500, €8 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 15 500CF2 = 12 000CF3 = 15 500CF4 = 8 000
PB = years
3.Medium
years01234−40 00012 50012 50012 50018 500

A machine costs €40 000 today. It generates €12 500 at the end of each year for 4 years and can then be sold for €6 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €40 000CF = €12 500S = €6 000n = 4r = 8%
NPV = €
4.Medium
years0123456−20 0007 5005 5008 0004 0005 5004 500

A project costs €20 000 today and returns €7 500, €5 500, €8 000, €4 000, €5 500, €4 500 at the end of years 1 to 6. The cost of capital is 8%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 8%CF0 = −20 000CF1 = 7 500CF2 = 5 500CF3 = 8 000CF4 = 4 000CF5 = 5 500CF6 = 4 500
DPB = years
5.Hard
years0123−25 00017 00014 50012 000

A project costs €25 000 and returns €17 000, €14 500, €12 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 17 000CF2 = 14 500CF3 = 12 000
IRR = %
6.Hard
years0123−25 00013 00015 00014 500

A project costs €25 000 and returns €13 000, €15 000, €14 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 13 000CF2 = 15 000CF3 = 14 500
IRR = %

Answer key

  1. 1. PB = 3.29 years
  2. 2. PB = 2.806 years
  3. 3. NPV = 5812 €
  4. 4. DPB = 3.677 years
  5. 5. IRR = 36.35 %
  6. 6. IRR = 31.32 %

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