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
years01234−20 0004 0007 5007 0007 500

A project costs €20 000 today and returns €4 000, €7 500, €7 000, €7 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −20 000CF1 = 4 000CF2 = 7 500CF3 = 7 000CF4 = 7 500
PB = years
2.Easy
years01234−10 0004 0004 0004 0004 000

A project costs €10 000 today and returns €4 000 at the end of each year for 4 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −10 000CF1 = 4 000CF2 = 4 000CF3 = 4 000CF4 = 4 000
NPV = €
3.Medium
years0123456−60 00019 00019 00019 00019 00019 00019 000

A project costs €60 000 today and returns €19 000 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 = −60 000CF1 = 19 000CF2 = 19 000CF3 = 19 000CF4 = 19 000CF5 = 19 000CF6 = 19 000
DPB = years
4.Medium
years0123456−50 00021 00022 50020 50011 50013 00010 500

A project costs €50 000 today and returns €21 000, €22 500, €20 500, €11 500, €13 000, €10 500 at the end of years 1 to 6. 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 = −50 000CF1 = 21 000CF2 = 22 500CF3 = 20 500CF4 = 11 500CF5 = 13 000CF6 = 10 500
DPB = years
5.Hard
years0123−40 00014 00014 50018 000

A project costs €40 000 and returns €14 000, €14 500, €18 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 14 000CF2 = 14 500CF3 = 18 000
IRR = %
6.Hard
years0123−10 0003 5006 0006 500

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

CF0 = −10 000CF1 = 3 500CF2 = 6 000CF3 = 6 500
IRR = %

Answer key

  1. 1. PB = 3.2 years
  2. 2. NPV = 1420 €
  3. 3. DPB = 4.212 years
  4. 4. DPB = 2.912 years
  5. 5. IRR = 7.579 %
  6. 6. IRR = 24.81 %

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