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
years0123−50 00023 00023 00023 000

A project costs €50 000 today and returns €23 000 at the end of each year for 3 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −50 000CF1 = 23 000CF2 = 23 000CF3 = 23 000
NPV = €
2.Easy
years01234567−10 0002 5002 5002 5002 5002 5002 5002 500

A project costs €10 000 today and returns €2 500 at the end of each year for 7 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €10 000CF = €2 500n = 7r = 5%
PI =
3.Medium
years01234567−80 00013 00013 00013 00013 00013 00013 00029 000

A machine costs €80 000 today. It generates €13 000 at the end of each year for 7 years and can then be sold for €16 000. The cost of capital is 10%. Find the net present value NPV.

C0 = €80 000CF = €13 000S = €16 000n = 7r = 10%
NPV = €
4.Medium
years01234−40 00011 50011 50011 50011 500

A project costs €40 000 today and returns €11 500 at the end of each year for 4 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 = 11 500CF2 = 11 500CF3 = 11 500CF4 = 11 500
DPB = years
5.Hard
years0123−10 0004 0005 0004 000

A project costs €10 000 and returns €4 000, €5 000, €4 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 4 000CF2 = 5 000CF3 = 4 000
IRR = %
6.Hard
years01234−20 0005 5005 5005 5005 500

An investment of €20 000 returns €5 500 at the end of each year for 4 years. Find its internal rate of return IRR in percent.

C0 = €20 000CF = €5 500n = 4
IRR = %

Answer key

  1. 1. NPV = 7198 €
  2. 2. PI = 1.447
  3. 3. NPV = −8500 €
  4. 4. DPB = 3.918 years
  5. 5. IRR = 14.33 %
  6. 6. IRR = 3.924 %

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