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
years012345−80 00024 00024 00024 00024 00024 000

A project costs €80 000 today and returns €24 000 at the end of each year for 5 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €80 000CF = €24 000n = 5r = 8%
PI =
2.Easy
years01234−20 0007 5004 5003 5005 000

A project costs €20 000 today and returns €7 500, €4 500, €3 500, €5 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −20 000CF1 = 7 500CF2 = 4 500CF3 = 3 500CF4 = 5 000
PB = years
3.Medium
years01234−75 00026 00018 00037 00021 000

An investment of €75 000 gives these cash flows at the end of years 1 to 4: €26 000, €18 000, €37 000, €21 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −75 000CF1 = 26 000CF2 = 18 000CF3 = 37 000CF4 = 21 000
NPV = €
4.Medium
years012345−40 00010 00010 00010 00010 00010 000

A project costs €40 000 today and returns €10 000 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 = −40 000CF1 = 10 000CF2 = 10 000CF3 = 10 000CF4 = 10 000CF5 = 10 000
DPB = years
5.Hard
years0123…8−150 00017 000+5%+5%+5%r = 8%, NPV = ?

A project costs €150 000 today. Its cash flow is €17 000 at the end of year 1 and grows by 5% per year until the last cash flow at the end of year 8. The cost of capital is 8%. Find the net present value NPV.

C0 = €150 000CF1 = €17 000g = 5%n = 8r = 8%
NPV = €
6.Hard
years0123456−50 00013 50013 50013 50013 50013 50013 500

An investment of €50 000 returns €13 500 at the end of each year for 6 years. Find its internal rate of return IRR in percent.

C0 = €50 000CF = €13 500n = 6
IRR = %

Answer key

  1. 1. PI = 1.198
  2. 2. PB = 3.9 years
  3. 3. NPV = 5654 €
  4. 4. DPB = 4.579 years
  5. 5. NPV = −35660 €
  6. 6. IRR = 15.81 %

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