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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years01234−10 0004 0004 0004 0004 000

A project costs €10 000 today and returns €4 000 at the end of each year for 4 years. The required rate of return is 10%. Find the net present value NPV.

r = 10%CF0 = −10 000CF1 = 4 000CF2 = 4 000CF3 = 4 000CF4 = 4 000
NPV = €
2.Easy
years0123456−20 0003 5005 5005 0005 5008 0008 000

A project costs €20 000 today and returns €3 500, €5 500, €5 000, €5 500, €8 000, €8 000 at the end of years 1 to 6. Assume cash flows arrive evenly through each year. Find the payback period PB in years.

CF0 = −20 000CF1 = 3 500CF2 = 5 500CF3 = 5 000CF4 = 5 500CF5 = 8 000CF6 = 8 000
PB = years
3.Medium
years0123−20 0006 0007 0008 000

An investment of €20 000 gives these cash flows at the end of years 1 to 3: €6 000, €7 000, €8 000. The cost of capital is 9%. Find the net present value NPV.

r = 9%CF0 = −20 000CF1 = 6 000CF2 = 7 000CF3 = 8 000
NPV = €
4.Medium
years0123456€40 000€5 000€5 000€5 000€5 000€5 000€5 000r = 8%, EAC = ?

A machine costs €40 000 today, lasts 6 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.

C0 = €40 000M = €5 000n = 6r = 8%
EAC = €
5.Hard
years0123−25 0007 50011 00010 500

A project costs €25 000 and returns €7 500, €11 000, €10 500 at the end of years 1 to 3. Cash flows can be reinvested at the cost of capital of 12%. Find the modified internal rate of return MIRR in percent.

r = 12%CF0 = −25 000CF1 = 7 500CF2 = 11 000CF3 = 10 500
MIRR = %
6.Hard
years0123−50 00023 00037 00036 500

A project costs €50 000 and returns €23 000, €37 000, €36 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −50 000CF1 = 23 000CF2 = 37 000CF3 = 36 500
IRR = %

Answer key

  1. 1. NPV = 2679 €
  2. 2. PB = 4.063 years
  3. 3. NPV = −2426 €
  4. 4. EAC = 13653 €
  5. 5. MIRR = 8.834 %
  6. 6. IRR = 37.98 %

Full step-by-step solutions: practise this topic on examproblems.com.