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
years0123…8−40 0007 5007 5007 5007 500

A project costs €40 000 today and returns €7 500 at the end of each year for 8 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €40 000CF = €7 500n = 8r = 8%
PI =
2.Easy
years01234567−50 00012 00012 00012 00012 00012 00012 00012 000

A project costs €50 000 today and returns €12 000 at the end of each year for 7 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €50 000CF = €12 000n = 7r = 8%
PI =
3.Medium
years01234−75 00023 00031 00024 00032 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €23 000, €31 000, €24 000, €32 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −75 000CF1 = 23 000CF2 = 31 000CF3 = 24 000CF4 = 32 000
NPV = €
4.Medium
years01234−60 00025 00026 50027 00022 000

A project costs €60 000 today and returns €25 000, €26 500, €27 000, €22 000 at the end of years 1 to 4. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −60 000CF1 = 25 000CF2 = 26 500CF3 = 27 000CF4 = 22 000
DPB = years
5.Hard
years0123…10−40 0008 0008 0008 0008 000

An investment of €40 000 returns €8 000 at the end of each year for 10 years. Find its internal rate of return IRR in percent.

C0 = €40 000CF = €8 000n = 10
IRR = %
6.Hard
years01234−40 00017 00019 00023 00016 500

A project costs €40 000 and returns €17 000, €19 000, €23 000, €16 500 at the end of years 1 to 4. 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 = −40 000CF1 = 17 000CF2 = 19 000CF3 = 23 000CF4 = 16 500
MIRR = %

Answer key

  1. 1. PI = 1.077
  2. 2. PI = 1.25
  3. 3. NPV = 15447 €
  4. 4. DPB = 2.521 years
  5. 5. IRR = 15.1 %
  6. 6. MIRR = 19.83 %

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