By intervening early, SBIRT saves lives and money and is consistent with overall support for patient wellness. Late-stage intervention and substance abuse treatment is expensive, and the patient has often developed comorbid health conditions.
Example 1: Even Cash Inflows: Calculate the net present value of a project which requires an initial investment of $243,000 and it is expected to generate a cash inflow of $50,000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum. Solution.
You can do it from the first Principles. Then the Discounted value of cash is simply the cash multiplied by the discount multiple. Alternatively you can use NPV function in Excel (Be careful! It discounts the first cash as well). You can also use XNPV, if you know the date of cash flow.