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
years0123−20 00010 00010 00010 000

A project costs €20 000 today and returns €10 000 at the end of each year for 3 years. The required rate of return is 6%. Find the net present value NPV.

r = 6%CF0 = −20 000CF1 = 10 000CF2 = 10 000CF3 = 10 000
NPV = €
2.Easy
years0123? 5 00010 00020 000

A machine is expected to save €5 000, €10 000, €20 000 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 = 5 000CF2 = 10 000CF3 = 20 000
PV = €
3.Medium
years0123−30 0009 00010 00012 000

An investment of €30 000 gives these cash flows at the end of years 1 to 3: €9 000, €10 000, €12 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −30 000CF1 = 9 000CF2 = 10 000CF3 = 12 000
NPV = €
4.Medium
years0123−45 00019 00017 00014 000

An investment of €45 000 gives these cash flows at the end of years 1 to 3: €19 000, €17 000, €14 000. The cost of capital is 10%. Find the net present value NPV.

r = 10%CF0 = −45 000CF1 = 19 000CF2 = 17 000CF3 = 14 000
NPV = €
5.Hard
years0123−40 00027 00019 00016 000

A project costs €40 000 and returns €27 000, €19 000, €16 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 27 000CF2 = 19 000CF3 = 16 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €10 000 and returns €5 500, €4 000, €2 500 at the end of years 1 to 3. Project B costs €15 000 and returns €4 000, €6 000, €7 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −10 000, 5 500, 4 000, 2 500B: −15 000, 4 000, 6 000, 7 500
r* = %

Answer key

  1. 1. NPV = 6730 €
  2. 2. PV = 30409 €
  3. 3. NPV = −4538 €
  4. 4. NPV = −3159 €
  5. 5. IRR = 28.61 %
  6. 6. r* = 3.029 %

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