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
years012345−50 00020 00020 00020 00020 00020 000

A project costs €50 000 today and returns €20 000 at the end of each year for 5 years. The required rate of return is 15%. Find the net present value NPV.

r = 15%CF0 = −50 000CF1 = 20 000CF2 = 20 000CF3 = 20 000CF4 = 20 000CF5 = 20 000
NPV = €
2.Easy
years012345−10 0002 5002 5002 5002 5002 500

A project costs €10 000 today and returns €2 500 at the end of each year for 5 years. The required rate of return is 9%. Find the net present value NPV.

r = 9%CF0 = −10 000CF1 = 2 500CF2 = 2 500CF3 = 2 500CF4 = 2 500CF5 = 2 500
NPV = €
3.Medium
years0123456−20 0007 5006 5009 0007 0008 5005 500

A project costs €20 000 today and returns €7 500, €6 500, €9 000, €7 000, €8 500, €5 500 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 = −20 000CF1 = 7 500CF2 = 6 500CF3 = 9 000CF4 = 7 000CF5 = 8 500CF6 = 5 500
DPB = years
4.Medium
years0123−30 00015 00014 00014 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €15 000, €14 000, €14 000. The cost of capital is 8%. Find the net present value NPV.

r = 8%CF0 = −30 000CF1 = 15 000CF2 = 14 000CF3 = 14 000
NPV = €
5.Hard
years0123−20 0007 5007 50010 000

A project costs €20 000 and returns €7 500, €7 500, €10 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −20 000CF1 = 7 500CF2 = 7 500CF3 = 10 000
IRR = %
6.Hard
years01234567−80 00011 500+2%+2%+2%+2%+2%+2%r = 10%, NPV = ?

A project costs €80 000 today. Its cash flow is €11 500 at the end of year 1 and grows by 2% per year until the last cash flow at the end of year 7. The cost of capital is 10%. Find the net present value NPV.

C0 = €80 000CF1 = €11 500g = 2%n = 7r = 10%
NPV = €

Answer key

  1. 1. NPV = 17043 €
  2. 2. NPV = −275.9 €
  3. 3. DPB = 3.386 years
  4. 4. NPV = 7005 €
  5. 5. IRR = 11.43 %
  6. 6. NPV = −20984 €

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