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 10%. Find the profitability index PI.

C0 = €40 000CF = €12 500n = 4r = 10%
PI =
2.Easy
years012345−40 00013 00013 00013 00013 00013 000

A project costs €40 000 today and returns €13 000 at the end of each year for 5 years. The required rate of return is 8%. Find the net present value NPV.

r = 8%CF0 = −40 000CF1 = 13 000CF2 = 13 000CF3 = 13 000CF4 = 13 000CF5 = 13 000
NPV = €
3.Medium
years0123−30 0007 0009 0007 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €7 000, €9 000, €7 000. The cost of capital is 6%. Find the net present value NPV.

r = 6%CF0 = −30 000CF1 = 7 000CF2 = 9 000CF3 = 7 000
NPV = €
4.Medium
years0123…8€40 000€3 000€3 000€3 000€3 000r = 10%, EAC = ?

A machine costs €40 000 today, lasts 8 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.

C0 = €40 000M = €3 000n = 8r = 10%
EAC = €
5.Hard
years0123…10−100 0009 000+2%+2%+2%r = 12%, NPV = ?

A project costs €100 000 today. Its cash flow is €9 000 at the end of year 1 and grows by 2% per year until the last cash flow at the end of year 10. The cost of capital is 12%. Find the net present value NPV.

C0 = €100 000CF1 = €9 000g = 2%n = 10r = 12%
NPV = €
6.Hard
years0123…9−200 00026 500+3%+3%+3%r = 10%, NPV = ?

A project costs €200 000 today. Its cash flow is €26 500 at the end of year 1 and grows by 3% per year until the last cash flow at the end of year 9. The cost of capital is 10%. Find the net present value NPV.

C0 = €200 000CF1 = €26 500g = 3%n = 9r = 10%
NPV = €

Answer key

  1. 1. PI = 0.9906
  2. 2. NPV = 11905 €
  3. 3. NPV = −9509 €
  4. 4. EAC = 10498 €
  5. 5. NPV = −45324 €
  6. 6. NPV = −30912 €

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