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.
Net Present Value. Net Present Value(NPV) is a formula used to determine the present value of an investment by the discounted sum of all cash flows received from the project. When a company or investor takes on a project or investment, it is important to calculate an estimate of how profitable the project or investment will be.