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 0005 00018 0008 000

A machine is expected to save €20 000, €5 000, €18 000, €8 000 at the end of years 1 to 4, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 20 000CF2 = 5 000CF3 = 18 000CF4 = 8 000
PV = €
2.Easy
years01234? 25 0006 00020 00020 000

A machine is expected to save €25 000, €6 000, €20 000, €20 000 at the end of years 1 to 4, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.

r = 12%CF1 = 25 000CF2 = 6 000CF3 = 20 000CF4 = 20 000
PV = €
3.Medium
years012345−30 0006 5006 5006 5006 50011 000

A machine costs €30 000 today. It generates €6 500 at the end of each year for 5 years and can then be sold for €4 500. The cost of capital is 12%. Find the net present value NPV.

C0 = €30 000CF = €6 500S = €4 500n = 5r = 12%
NPV = €
4.Medium
years0123−60 00025 00029 00020 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €25 000, €29 000, €20 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −60 000CF1 = 25 000CF2 = 29 000CF3 = 20 000
NPV = €
5.Hard
years0123−10 0007 5005 0007 500

A project costs €10 000 and returns €7 500, €5 000, €7 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 500CF2 = 5 000CF3 = 7 500
IRR = %
6.Hard
years012−10 0007 5006 500

A project costs €10 000 and returns €7 500, €6 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 500CF2 = 6 500
IRR = %

Answer key

  1. 1. PV = 42974 €
  2. 2. PV = 54051 €
  3. 3. NPV = −4016 €
  4. 4. NPV = 7390 €
  5. 5. IRR = 45.09 %
  6. 6. IRR = 26.42 %

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