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…8−25 0005 5005 5005 5005 500

A project costs €25 000 today and returns €5 500 at the end of each year for 8 years. The required rate of return is 10%. Find the profitability index PI.

C0 = €25 000CF = €5 500n = 8r = 10%
PI =
2.Easy
years0123−80 00037 00037 00037 000

A project costs €80 000 today and returns €37 000 at the end of each year for 3 years. The required rate of return is 9%. Find the net present value NPV.

r = 9%CF0 = −80 000CF1 = 37 000CF2 = 37 000CF3 = 37 000
NPV = €
3.Medium
years0123−60 00028 00018 00015 000

An investment of €60 000 gives these cash flows at the end of years 1 to 3: €28 000, €18 000, €15 000. The cost of capital is 12%. Find the net present value NPV.

r = 12%CF0 = −60 000CF1 = 28 000CF2 = 18 000CF3 = 15 000
NPV = €
4.Medium
years0123…9€50 000€5 000€5 000€5 000€5 000r = 12%, EAC = ?

A machine costs €50 000 today, lasts 9 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 12%. Find its equivalent annual cost EAC.

C0 = €50 000M = €5 000n = 9r = 12%
EAC = €
5.Hard
years0123−40 00029 50020 50019 000

A project costs €40 000 and returns €29 500, €20 500, €19 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 29 500CF2 = 20 500CF3 = 19 000
IRR = %
6.Hard
years012−40 00023 50020 000

A project costs €40 000 and returns €23 500, €20 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −40 000CF1 = 23 500CF2 = 20 000
IRR = %

Answer key

  1. 1. PI = 1.174
  2. 2. NPV = 13658 €
  3. 3. NPV = −9974 €
  4. 4. EAC = 14384 €
  5. 5. IRR = 36.68 %
  6. 6. IRR = 5.945 %

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