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
years01234−50 00024 00024 00024 00024 000

A project costs €50 000 today and returns €24 000 at the end of each year for 4 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −50 000CF1 = 24 000CF2 = 24 000CF3 = 24 000CF4 = 24 000
NPV = €
2.Easy
years01234? 12 00025 0005 00012 000

A machine is expected to save €12 000, €25 000, €5 000, €12 000 at the end of years 1 to 4, after which it is worthless. The required return is 10%. What is the most the company should pay for the machine today? Find PV.

r = 10%CF1 = 12 000CF2 = 25 000CF3 = 5 000CF4 = 12 000
PV = €
3.Medium
years0123456−40 00010 50010 50010 50010 50010 50010 500

A project costs €40 000 today and returns €10 500 at the end of each year for 6 years. The cost of capital is 6%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 6%CF0 = −40 000CF1 = 10 500CF2 = 10 500CF3 = 10 500CF4 = 10 500CF5 = 10 500CF6 = 10 500
DPB = years
4.Medium
years0123456−40 00012 00012 00012 00012 00012 00012 000

A project costs €40 000 today and returns €12 000 at the end of each year for 6 years. The cost of capital is 12%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 12%CF0 = −40 000CF1 = 12 000CF2 = 12 000CF3 = 12 000CF4 = 12 000CF5 = 12 000CF6 = 12 000
DPB = years
5.Hard
years01234−10 0003 0006 0005 5003 000

A project costs €10 000 and returns €3 000, €6 000, €5 500, €3 000 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 12%. Find the modified internal rate of return MIRR in percent.

r = 12%CF0 = −10 000CF1 = 3 000CF2 = 6 000CF3 = 5 500CF4 = 3 000
MIRR = %
6.Hard
years012345−80 00016 000+3%+3%+3%+3%r = 8%, NPV = ?

A project costs €80 000 today. Its cash flow is €16 000 at the end of year 1 and grows by 3% per year until the last cash flow at the end of year 5. The cost of capital is 8%. Find the net present value NPV.

C0 = €80 000CF1 = €16 000g = 3%n = 5r = 8%
NPV = €

Answer key

  1. 1. NPV = 26077 €
  2. 2. PV = 43523 €
  3. 3. DPB = 4.461 years
  4. 4. DPB = 4.522 years
  5. 5. MIRR = 20.24 %
  6. 6. NPV = −12474 €

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