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
years01234567−40 0007 0007 0007 0007 0007 0007 0007 000

A project costs €40 000 today and returns €7 000 at the end of each year for 7 years. The required rate of return is 8%. Find the profitability index PI.

C0 = €40 000CF = €7 000n = 7r = 8%
PI =
2.Easy
years01234? 18 00025 0008 00012 000

A machine is expected to save €18 000, €25 000, €8 000, €12 000 at the end of years 1 to 4, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.

r = 12%CF1 = 18 000CF2 = 25 000CF3 = 8 000CF4 = 12 000
PV = €
3.Medium
years0123−75 00023 00016 00023 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €23 000, €16 000, €23 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −75 000CF1 = 23 000CF2 = 16 000CF3 = 23 000
NPV = €
4.Medium
years01234−30 00014 00014 0007 0008 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €14 000, €14 000, €7 000, €8 000. The cost of capital is 15%. Find the net present value NPV.

r = 15%CF0 = −30 000CF1 = 14 000CF2 = 14 000CF3 = 7 000CF4 = 8 000
NPV = €
5.Hard
years0123−25 00012 00012 50016 000

A project costs €25 000 and returns €12 000, €12 500, €16 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 12 000CF2 = 12 500CF3 = 16 000
IRR = %
6.Hard
years012−25 00018 00014 000

A project costs €25 000 and returns €18 000, €14 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 18 000CF2 = 14 000
IRR = %

Answer key

  1. 1. PI = 0.9111
  2. 2. PV = 49322 €
  3. 3. NPV = −23588 €
  4. 4. NPV = 1937 €
  5. 5. IRR = 27.03 %
  6. 6. IRR = 19.04 %

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