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
years01234−40 0006 5007 00014 00014 500

A project costs €40 000 today and returns €6 500, €7 000, €14 000, €14 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −40 000CF1 = 6 500CF2 = 7 000CF3 = 14 000CF4 = 14 500
PB = years
2.Easy
years0123? 6 0005 00018 000

A machine is expected to save €6 000, €5 000, €18 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 6 000CF2 = 5 000CF3 = 18 000
PV = €
3.Medium
years0123−75 00034 00016 00020 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €34 000, €16 000, €20 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −75 000CF1 = 34 000CF2 = 16 000CF3 = 20 000
NPV = €
4.Medium
years0123…9−500 00044 000+1%+1%…r = 12%, NPV = ?

A project costs €500 000 today. It generates €44 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 12%. Find the net present value NPV.

C0 = €500 000CF1 = €44 000g = 1%r = 12%
NPV = €
5.Hard
years0123…9−40 0007 0007 0007 0007 000

An investment of €40 000 returns €7 000 at the end of each year for 9 years. Find its internal rate of return IRR in percent.

C0 = €40 000CF = €7 000n = 9
IRR = %
6.Hard
years0123−40 00029 50019 00024 000

A project costs €40 000 and returns €29 500, €19 000, €24 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 29 500CF2 = 19 000CF3 = 24 000
IRR = %

Answer key

  1. 1. PB = 3.862 years
  2. 2. PV = 25224 €
  3. 3. NPV = −15841 €
  4. 4. NPV = −100000 €
  5. 5. IRR = 10.2 %
  6. 6. IRR = 38.99 %

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