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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years012345−80 00021 00021 00021 00021 00021 000

A project costs €80 000 today and returns €21 000 at the end of each year for 5 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −80 000CF1 = 21 000CF2 = 21 000CF3 = 21 000CF4 = 21 000CF5 = 21 000
NPV = €
2.Easy
years012345−50 00016 50016 50016 50016 50016 500

A project costs €50 000 today and returns €16 500 at the end of each year for 5 years. The required rate of return is 9%. Find the net present value NPV.

r = 9%CF0 = −50 000CF1 = 16 500CF2 = 16 500CF3 = 16 500CF4 = 16 500CF5 = 16 500
NPV = €
3.Medium
years01234−50 00022 00019 00015 50012 500

A project costs €50 000 today and returns €22 000, €19 000, €15 500, €12 500 at the end of years 1 to 4. The cost of capital is 10%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 10%CF0 = −50 000CF1 = 22 000CF2 = 19 000CF3 = 15 500CF4 = 12 500
DPB = years
4.Medium
years0123−30 0006 0007 00012 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €6 000, €7 000, €12 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −30 000CF1 = 6 000CF2 = 7 000CF3 = 12 000
NPV = €
5.Hard
years0123−25 0009 00011 50014 500

A project costs €25 000 and returns €9 000, €11 500, €14 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 9 000CF2 = 11 500CF3 = 14 500
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €40 000 and returns €23 000, €15 000, €9 000 at the end of years 1 to 3. Project B costs €45 000 and returns €12 500, €17 500, €24 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −40 000, 23 000, 15 000, 9 000B: −45 000, 12 500, 17 500, 24 500
r* = %

Answer key

  1. 1. NPV = 8460 €
  2. 2. NPV = 14179 €
  3. 3. DPB = 3.311 years
  4. 4. NPV = −8034 €
  5. 5. IRR = 17.33 %
  6. 6. r* = 7.076 %

Full step-by-step solutions: practise this topic on examproblems.com.