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 00012 50012 50012 50012 500

A project costs €40 000 today and returns €12 500 at the end of each year for 4 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €40 000CF = €12 500n = 4r = 6%
PI =
2.Easy
years01234−80 00038 50038 50038 50038 500

A project costs €80 000 today and returns €38 500 at the end of each year for 4 years. The required rate of return is 5%. Find the net present value NPV.

r = 5%CF0 = −80 000CF1 = 38 500CF2 = 38 500CF3 = 38 500CF4 = 38 500
NPV = €
3.Medium
years0123−45 00016 00015 00020 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €16 000, €15 000, €20 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −45 000CF1 = 16 000CF2 = 15 000CF3 = 20 000
NPV = €
4.Medium
years0123…8−80 00010 00010 00010 00026 000

A machine costs €80 000 today. It generates €10 000 at the end of each year for 8 years and can then be sold for €16 000. The cost of capital is 12%. Find the net present value NPV.

C0 = €80 000CF = €10 000S = €16 000n = 8r = 12%
NPV = €
5.Hard
years0123−10 0007 5004 5005 000

A project costs €10 000 and returns €7 500, €4 500, €5 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 7 500CF2 = 4 500CF3 = 5 000
IRR = %
6.Hard
years0123−50 00017 50024 50020 000

A project costs €50 000 and returns €17 500, €24 500, €20 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 17 500CF2 = 24 500CF3 = 20 000
IRR = %

Answer key

  1. 1. PI = 1.083
  2. 2. NPV = 56519 €
  3. 3. NPV = −4521 €
  4. 4. NPV = −23861 €
  5. 5. IRR = 35.47 %
  6. 6. IRR = 11.31 %

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