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
years01234−50 00019 00017 50015 50010 000

A project costs €50 000 today and returns €19 000, €17 500, €15 500, €10 000 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −50 000CF1 = 19 000CF2 = 17 500CF3 = 15 500CF4 = 10 000
PB = years
2.Easy
years01234−50 00019 00019 00019 00019 000

A project costs €50 000 today and returns €19 000 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −50 000CF1 = 19 000CF2 = 19 000CF3 = 19 000CF4 = 19 000
NPV = €
3.Medium
years0123…9−500 00024 000+4%+4%…r = 8%, NPV = ?

A project costs €500 000 today. It generates €24 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 8%. Find the net present value NPV.

C0 = €500 000CF1 = €24 000g = 4%r = 8%
NPV = €
4.Medium
years01234−20 0006 0006 0008 0005 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €6 000, €6 000, €8 000, €5 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −20 000CF1 = 6 000CF2 = 6 000CF3 = 8 000CF4 = 5 000
NPV = €
5.Hard
years012−25 00010 00016 500

A project costs €25 000 and returns €10 000, €16 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −25 000CF1 = 10 000CF2 = 16 500
IRR = %
6.Hard
years0123−10 0004 0006 5004 000

A project costs €10 000 and returns €4 000, €6 500, €4 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 4 000CF2 = 6 500CF3 = 4 000
IRR = %

Answer key

  1. 1. PB = 2.871 years
  2. 2. NPV = 17373 €
  3. 3. NPV = 100000 €
  4. 4. NPV = −987.9 €
  5. 5. IRR = 3.666 %
  6. 6. IRR = 21.02 %

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