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Excel practice exercises

Investments: FV, NPV and IRR practice exercises

What savings grow to, what future cash flows are worth today and the return an investment makes: the three formulas behind most finance test questions.

Start the first exercise
  1. 1What savings grow to with FVIn B5, work out what the savings grow to with FV: the monthly rate, the number of months and the monthly deposit as money going out, FV(B3/12,B4*12,-B2).
  2. 2Net present value with NPVPremiumIn E2, work out the project's net present value at the rate in E1. NPV discounts every value it gets, so give it years 1 to 4 and add the year 0 investment after: NPV(E1,B3:B6)+B2.
  3. 3Rate of return with IRRPremiumIn E1, work out the project's internal rate of return with IRR. Give it every cash flow, starting with the year 0 investment.

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