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
years01234−80 00032 00032 00032 00032 000

A project costs €80 000 today and returns €32 000 at the end of each year for 4 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €80 000CF = €32 000n = 4r = 10%
PI =
2.Easy
years0123? 10 0006 00012 000

A machine is expected to save €10 000, €6 000, €12 000 at the end of years 1 to 3, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 10 000CF2 = 6 000CF3 = 12 000
PV = €
3.Medium
years012345−30 0007 5007 5007 5007 5007 500

A project costs €30 000 today and returns €7 500 at the end of each year for 5 years. 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 = −30 000CF1 = 7 500CF2 = 7 500CF3 = 7 500CF4 = 7 500CF5 = 7 500
DPB = years
4.Medium
years0123−30 00012 00013 0007 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €12 000, €13 000, €7 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −30 000CF1 = 12 000CF2 = 13 000CF3 = 7 000
NPV = €
5.Hard
years012−40 00025 50017 000

A project costs €40 000 and returns €25 500, €17 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 25 500CF2 = 17 000
IRR = %
6.Hard
years01234−200 00060 000+3%+3%+3%r = 12%, NPV = ?

A project costs €200 000 today. Its cash flow is €60 000 at the end of year 1 and grows by 3% per year until the last cash flow at the end of year 4. The cost of capital is 12%. Find the net present value NPV.

C0 = €200 000CF1 = €60 000g = 3%n = 4r = 12%
NPV = €

Answer key

  1. 1. PI = 1.268
  2. 2. PV = 21123 €
  3. 3. DPB = 4.579 years
  4. 4. NPV = −3940 €
  5. 5. IRR = 4.442 %
  6. 6. NPV = −10187 €

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