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
years0123−25 00011 50011 50011 500

A project costs €25 000 today and returns €11 500 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −25 000CF1 = 11 500CF2 = 11 500CF3 = 11 500
NPV = €
2.Easy
years012345−25 00010 00010 00010 00010 00010 000

A project costs €25 000 today and returns €10 000 at the end of each year for 5 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −25 000CF1 = 10 000CF2 = 10 000CF3 = 10 000CF4 = 10 000CF5 = 10 000
NPV = €
3.Medium
years0123…9−500 00024 000+3%+3%…r = 9%, NPV = ?

A project costs €500 000 today. It generates €24 000 at the end of the first year, and the cash flow then grows by 3% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €500 000CF1 = €24 000g = 3%r = 9%
NPV = €
4.Medium
years0123…8€20 000€1 500€1 500€1 500€1 500r = 8%, EAC = ?

A machine costs €20 000 today, lasts 8 years and costs €1 500 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €20 000M = €1 500n = 8r = 8%
EAC = €
5.Hard
years012−20 0007 50014 500

A project costs €20 000 and returns €7 500, €14 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 7 500CF2 = 14 500
IRR = %
6.Hard
years01234−25 00014 50014 50011 5008 000

A project costs €25 000 and returns €14 500, €14 500, €11 500, €8 000 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 10%. Find the modified internal rate of return MIRR in percent.

r = 10%CF0 = −25 000CF1 = 14 500CF2 = 14 500CF3 = 11 500CF4 = 8 000
MIRR = %

Answer key

  1. 1. NPV = 5740 €
  2. 2. NPV = 8522 €
  3. 3. NPV = −100000 €
  4. 4. EAC = 4980 €
  5. 5. IRR = 5.937 %
  6. 6. MIRR = 23.15 %

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