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
years0123456−20 0005 5005 5005 5005 5005 5005 500

A project costs €20 000 today and returns €5 500 at the end of each year for 6 years. The required rate of return is 5%. Find the profitability index PI.

C0 = €20 000CF = €5 500n = 6r = 5%
PI =
2.Easy
years0123…8−40 00011 00011 00011 00011 000

A project costs €40 000 today and returns €11 000 at the end of each year for 8 years. The required rate of return is 6%. Find the profitability index PI.

C0 = €40 000CF = €11 000n = 8r = 6%
PI =
3.Medium
years0123−30 0008 0007 00014 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €8 000, €7 000, €14 000. The cost of capital is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −30 000CF1 = 8 000CF2 = 7 000CF3 = 14 000
NPV = €
4.Medium
years01234−45 00011 00013 00015 00013 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €11 000, €13 000, €15 000, €13 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −45 000CF1 = 11 000CF2 = 13 000CF3 = 15 000CF4 = 13 000
NPV = €
5.Hard
years0123−10 0004 5007 0007 000

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

CF0 = −10 000CF1 = 4 500CF2 = 7 000CF3 = 7 000
IRR = %
6.Hard
years0123…8−10 0001 5001 5001 5001 500

An investment of €10 000 returns €1 500 at the end of each year for 8 years. Find its internal rate of return IRR in percent.

C0 = €10 000CF = €1 500n = 8
IRR = %

Answer key

  1. 1. PI = 1.396
  2. 2. PI = 1.708
  3. 3. NPV = −4981 €
  4. 4. NPV = −161.2 €
  5. 5. IRR = 35.13 %
  6. 6. IRR = 4.239 %

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