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…8−25 0007 0007 0007 0007 000

A project costs €25 000 today and returns €7 000 at the end of each year for 8 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €25 000CF = €7 000n = 8r = 12%
PI =
2.Easy
years01234−80 00027 00027 00027 00027 000

A project costs €80 000 today and returns €27 000 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −80 000CF1 = 27 000CF2 = 27 000CF3 = 27 000CF4 = 27 000
NPV = €
3.Medium
years0123…9−100 00011 000+2%+2%…r = 11%, NPV = ?

A project costs €100 000 today. It generates €11 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €100 000CF1 = €11 000g = 2%r = 11%
NPV = €
4.Medium
years0123−30 00013 0008 0009 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €13 000, €8 000, €9 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −30 000CF1 = 13 000CF2 = 8 000CF3 = 9 000
NPV = €
5.Hard
years0123−25 00017 00017 00017 000

A project costs €25 000 and returns €17 000, €17 000, €17 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 17 000CF2 = 17 000CF3 = 17 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €20 000 and returns €11 500, €8 000, €4 500 at the end of years 1 to 3. Project B costs €22 000 and returns €5 500, €9 500, €11 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −20 000, 11 500, 8 000, 4 500B: −22 000, 5 500, 9 500, 11 500
r* = %

Answer key

  1. 1. PI = 1.391
  2. 2. NPV = 11455 €
  3. 3. NPV = 22222 €
  4. 4. NPV = −6729 €
  5. 5. IRR = 46.27 %
  6. 6. r* = 2.966 %

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