A project costs €25 000 today and returns €12 500 at the end of each year for 3 years. The required rate of return is 12%. Find the net present value NPV.
NPV & IRR worksheet with answers
A project costs €20 000 today and returns €9 000 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.
An investment of €45 000 gives these cash flows at the end of years 1 to 3: €13 000, €14 000, €20 000. The cost of capital is 12%. Find the net present value NPV.
An investment of €20 000 gives these cash flows at the end of years 1 to 4: €9 000, €7 000, €7 000, €8 000. The cost of capital is 6%. Find the net present value NPV.
A project costs €50 000 and returns €37 000, €29 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
A project costs €25 000 and returns €17 000, €10 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
Answer key
- 1. NPV = 5023 €
- 2. NPV = 10485 €
- 3. NPV = −7997 €
- 4. NPV = 6935 €
- 5. IRR = 22.26 %
- 6. IRR = 7.185 %
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