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…8−50 00011 50011 50011 50011 500

A project costs €50 000 today and returns €11 500 at the end of each year for 8 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €50 000CF = €11 500n = 8r = 6%
PI =
2.Easy
years01234567−20 0005 0005 0005 0005 0005 0005 0005 000

A project costs €20 000 today and returns €5 000 at the end of each year for 7 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €20 000CF = €5 000n = 7r = 10%
PI =
3.Medium
years01234−45 00013 00022 00017 00014 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €13 000, €22 000, €17 000, €14 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −45 000CF1 = 13 000CF2 = 22 000CF3 = 17 000CF4 = 14 000
NPV = €
4.Medium
years0123…9−250 00033 000+1%+1%…r = 11%, NPV = ?

A project costs €250 000 today. It generates €33 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 11%. Find the net present value NPV.

C0 = €250 000CF1 = €33 000g = 1%r = 11%
NPV = €
5.Hard
years01234−40 00012 50012 50012 50012 500

An investment of €40 000 returns €12 500 at the end of each year for 4 years. Find its internal rate of return IRR in percent.

C0 = €40 000CF = €12 500n = 4
IRR = %
6.Hard
years0123−25 00018 50018 00011 500

A project costs €25 000 and returns €18 500, €18 000, €11 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 18 500CF2 = 18 000CF3 = 11 500
IRR = %

Answer key

  1. 1. PI = 1.428
  2. 2. PI = 1.217
  3. 3. NPV = 7335 €
  4. 4. NPV = 80000 €
  5. 5. IRR = 9.564 %
  6. 6. IRR = 45.33 %

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