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
years0123? 5 00025 00018 000

A machine is expected to save €5 000, €25 000, €18 000 at the end of years 1 to 3, after which it is worthless. The required return is 9%. What is the most the company should pay for the machine today? Find PV.

r = 9%CF1 = 5 000CF2 = 25 000CF3 = 18 000
PV = €
2.Easy
years0123? 18 0006 00025 000

A machine is expected to save €18 000, €6 000, €25 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.

r = 6%CF1 = 18 000CF2 = 6 000CF3 = 25 000
PV = €
3.Medium
years0123−75 00022 00037 00029 000

An investment of €75 000 gives these cash flows at the end of years 1 to 3: €22 000, €37 000, €29 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −75 000CF1 = 22 000CF2 = 37 000CF3 = 29 000
NPV = €
4.Medium
years01234−45 00011 00022 00016 00011 000

An investment of €45 000 gives these cash flows at the end of years 1 to 4: €11 000, €22 000, €16 000, €11 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −45 000CF1 = 11 000CF2 = 22 000CF3 = 16 000CF4 = 11 000
NPV = €
5.Hard
years0123−10 0004 5004 5004 500

An investment of €10 000 returns €4 500 at the end of each year for 3 years. Find its internal rate of return IRR in percent.

C0 = €10 000CF = €4 500n = 3
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €5 500, €4 000, €2 000 at the end of years 1 to 3. Project B costs €12 000 and returns €3 000, €4 500, €6 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 5 500, 4 000, 2 000B: −12 000, 3 000, 4 500, 6 500
r* = %

Answer key

  1. 1. PV = 39528 €
  2. 2. PV = 43312 €
  3. 3. NPV = −5219 €
  4. 4. NPV = 8302 €
  5. 5. IRR = 16.65 %
  6. 6. r* = 4.59 %

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