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
years0123−20 0008 5008 5008 500

A project costs €20 000 today and returns €8 500 at the end of each year for 3 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −20 000CF1 = 8 500CF2 = 8 500CF3 = 8 500
NPV = €
2.Easy
years0123456−20 0004 0004 0004 0004 0004 0004 000

A project costs €20 000 today and returns €4 000 at the end of each year for 6 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €20 000CF = €4 000n = 6r = 12%
PI =
3.Medium
years0123−75 00028 00018 00031 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €28 000, €18 000, €31 000. The cost of capital is 9%. Find the net present value NPV.

r = 9%CF0 = −75 000CF1 = 28 000CF2 = 18 000CF3 = 31 000
NPV = €
4.Medium
years01234−60 00018 50025 50015 50016 000

A project costs €60 000 today and returns €18 500, €25 500, €15 500, €16 000 at the end of years 1 to 4. The cost of capital is 8%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 8%CF0 = −60 000CF1 = 18 500CF2 = 25 500CF3 = 15 500CF4 = 16 000
DPB = years
5.Hard
years0123−20 0008 00012 00011 500

A project costs €20 000 and returns €8 000, €12 000, €11 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 8 000CF2 = 12 000CF3 = 11 500
IRR = %
6.Hard
years012−40 00029 50029 500

A project costs €40 000 and returns €29 500, €29 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 29 500CF2 = 29 500
IRR = %

Answer key

  1. 1. NPV = 3148 €
  2. 2. PI = 0.8223
  3. 3. NPV = −10224 €
  4. 4. DPB = 3.74 years
  5. 5. IRR = 24.9 %
  6. 6. IRR = 30.33 %

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