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
years01234? 12 00012 00020 00010 000

A machine is expected to save €12 000, €12 000, €20 000, €10 000 at the end of years 1 to 4, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 12 000CF2 = 12 000CF3 = 20 000CF4 = 10 000
PV = €
2.Easy
years0123−80 00045 00045 00045 000

A project costs €80 000 today and returns €45 000 at the end of each year for 3 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −80 000CF1 = 45 000CF2 = 45 000CF3 = 45 000
NPV = €
3.Medium
years0123…8−80 00010 00010 00010 00022 000

A machine costs €80 000 today. It generates €10 000 at the end of each year for 8 years and can then be sold for €12 000. The cost of capital is 10%. Find the net present value NPV.

C0 = €80 000CF = €10 000S = €12 000n = 8r = 10%
NPV = €
4.Medium
years0123…9−400 00029 000+4%+4%…r = 12%, NPV = ?

A project costs €400 000 today. It generates €29 000 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.

C0 = €400 000CF1 = €29 000g = 4%r = 12%
NPV = €
5.Hard
years0123−20 00011 50010 5006 000

A project costs €20 000 and returns €11 500, €10 500, €6 000 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 6%. Find the modified internal rate of return MIRR in percent.

r = 6%CF0 = −20 000CF1 = 11 500CF2 = 10 500CF3 = 6 000
MIRR = %
6.Hard
years012−25 00016 50015 000

A project costs €25 000 and returns €16 500, €15 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 16 500CF2 = 15 000
IRR = %

Answer key

  1. 1. PV = 44626 €
  2. 2. NPV = 31908 €
  3. 3. NPV = −21053 €
  4. 4. NPV = −37500 €
  5. 5. MIRR = 14.54 %
  6. 6. IRR = 17.2 %

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