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
years0123−25 00012 50012 50012 500

A project costs €25 000 today and returns €12 500 at the end of each year for 3 years. The required rate of return is 7.000000000000001%. Find the net present value NPV.

r = 7.000000000000001%CF0 = −25 000CF1 = 12 500CF2 = 12 500CF3 = 12 500
NPV = €
2.Easy
years012345−40 00012 00012 00012 00012 00012 000

A project costs €40 000 today and returns €12 000 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 = 12 000CF2 = 12 000CF3 = 12 000CF4 = 12 000CF5 = 12 000
NPV = €
3.Medium
years012345−60 00016 00016 00016 00016 00016 000

A project costs €60 000 today and returns €16 000 at the end of each year for 5 years. The cost of capital is 8%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 8%CF0 = −60 000CF1 = 16 000CF2 = 16 000CF3 = 16 000CF4 = 16 000CF5 = 16 000
DPB = years
4.Medium
years01234−20 0007 0004 0009 0008 000

An investment of €20 000 gives these cash flows at the end of years 1 to 4: €7 000, €4 000, €9 000, €8 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −20 000CF1 = 7 000CF2 = 4 000CF3 = 9 000CF4 = 8 000
NPV = €
5.Hard
years0123−10 0006 0004 0004 000

A project costs €10 000 and returns €6 000, €4 000, €4 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 6 000CF2 = 4 000CF3 = 4 000
IRR = %
6.Hard
r (%)NPVABr* = ?0

Project A costs €20 000 and returns €11 500, €8 000, €4 500 at the end of years 1 to 3. Project B costs €22 000 and returns €6 000, €9 000, €11 500. Find the crossover rate r* at which both projects have the same NPV, in percent.

A: −20 000, 11 500, 8 000, 4 500B: −22 000, 6 000, 9 000, 11 500
r* = %

Answer key

  1. 1. NPV = 7804 €
  2. 2. NPV = 7913 €
  3. 3. DPB = 4.643 years
  4. 4. NPV = 4651 €
  5. 5. IRR = 20.64 %
  6. 6. r* = 3.057 %

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