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
years01234567−25 0005 0005 0005 0005 0005 0005 0005 000

A project costs €25 000 today and returns €5 000 at the end of each year for 7 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €25 000CF = €5 000n = 7r = 10%
PI =
2.Easy
years0123? 20 00020 0005 000

A machine is expected to save €20 000, €20 000, €5 000 at the end of years 1 to 3, after which it is worthless. The required return is 15%. What is the most the company should pay for the machine today? Find PV.

r = 15%CF1 = 20 000CF2 = 20 000CF3 = 5 000
PV = €
3.Medium
years0123…9−250 00014 000+2%+2%…r = 9%, NPV = ?

A project costs €250 000 today. It generates €14 000 at the end of the first year, and the cash flow then grows by 2% per year forever. The cost of capital is 9%. Find the net present value NPV.

C0 = €250 000CF1 = €14 000g = 2%r = 9%
NPV = €
4.Medium
years0123456−30 00010 0009 0007 00010 00010 5009 000

A project costs €30 000 today and returns €10 000, €9 000, €7 000, €10 000, €10 500, €9 000 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 = −30 000CF1 = 10 000CF2 = 9 000CF3 = 7 000CF4 = 10 000CF5 = 10 500CF6 = 9 000
DPB = years
5.Hard
years0123456−10 0002 5002 5002 5002 5002 5002 500

An investment of €10 000 returns €2 500 at the end of each year for 6 years. Find its internal rate of return IRR in percent.

C0 = €10 000CF = €2 500n = 6
IRR = %
6.Hard
years012−50 00031 50035 500

A project costs €50 000 and returns €31 500, €35 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 31 500CF2 = 35 500
IRR = %

Answer key

  1. 1. PI = 0.9737
  2. 2. PV = 35802 €
  3. 3. NPV = −50000 €
  4. 4. DPB = 4.43 years
  5. 5. IRR = 12.98 %
  6. 6. IRR = 21.46 %

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