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 0007 0007 0007 0007 000

A project costs €20 000 today and returns €7 000 at the end of each year for 4 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −20 000CF1 = 7 000CF2 = 7 000CF3 = 7 000CF4 = 7 000
NPV = €
2.Easy
years012345−100 00036 00036 00036 00036 00036 000

A project costs €100 000 today and returns €36 000 at the end of each year for 5 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −100 000CF1 = 36 000CF2 = 36 000CF3 = 36 000CF4 = 36 000CF5 = 36 000
NPV = €
3.Medium
years01234567−100 00020 50020 50020 50020 50020 50020 50040 500

A machine costs €100 000 today. It generates €20 500 at the end of each year for 7 years and can then be sold for €20 000. The cost of capital is 8%. Find the net present value NPV.

C0 = €100 000CF = €20 500S = €20 000n = 7r = 8%
NPV = €
4.Medium
years0123…9−400 00029 000+4%+4%…r = 10%, NPV = ?

A project costs €400 000 today. It generates €29 000 at the end of the first year, and the cash flow then grows by 4% per year forever. The cost of capital is 10%. Find the net present value NPV.

C0 = €400 000CF1 = €29 000g = 4%r = 10%
NPV = €
5.Hard
years0123−40 00026 50019 00025 000

A project costs €40 000 and returns €26 500, €19 000, €25 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 26 500CF2 = 19 000CF3 = 25 000
IRR = %
6.Hard
years01234−25 0009 50014 50015 00010 000

A project costs €25 000 and returns €9 500, €14 500, €15 000, €10 000 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 8%. Find the modified internal rate of return MIRR in percent.

r = 8%CF0 = −25 000CF1 = 9 500CF2 = 14 500CF3 = 15 000CF4 = 10 000
MIRR = %

Answer key

  1. 1. NPV = 3710 €
  2. 2. NPV = 51645 €
  3. 3. NPV = 18400 €
  4. 4. NPV = 83333 €
  5. 5. IRR = 35.41 %
  6. 6. MIRR = 21.83 %

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