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
years01234−10 0004 0004 0004 0004 000

A project costs €10 000 today and returns €4 000 at the end of each year for 4 years. The required rate of return is 9%. Find the net present value NPV.

r = 9%CF0 = −10 000CF1 = 4 000CF2 = 4 000CF3 = 4 000CF4 = 4 000
NPV = €
2.Easy
years012345−100 00040 00040 00040 00040 00040 000

A project costs €100 000 today and returns €40 000 at the end of each year for 5 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −100 000CF1 = 40 000CF2 = 40 000CF3 = 40 000CF4 = 40 000CF5 = 40 000
NPV = €
3.Medium
years0123−60 00028 00013 00023 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €28 000, €13 000, €23 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −60 000CF1 = 28 000CF2 = 13 000CF3 = 23 000
NPV = €
4.Medium
years01234−20 0007 5005 5005 0007 500

A project costs €20 000 today and returns €7 500, €5 500, €5 000, €7 500 at the end of years 1 to 4. 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 = 5 000CF4 = 7 500
DPB = years
5.Hard
years0123−40 00019 50025 00022 000

A project costs €40 000 and returns €19 500, €25 000, €22 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 19 500CF2 = 25 000CF3 = 22 000
IRR = %
6.Hard
years0123…8−80 00013 00013 00013 00013 000

An investment of €80 000 returns €13 000 at the end of each year for 8 years. Find its internal rate of return IRR in percent.

C0 = €80 000CF = €13 000n = 8
IRR = %

Answer key

  1. 1. NPV = 2959 €
  2. 2. NPV = 51631 €
  3. 3. NPV = −1674 €
  4. 4. DPB = 3.793 years
  5. 5. IRR = 29.66 %
  6. 6. IRR = 6.229 %

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