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. Accounting. cash inflows minus cash outflows the value of an investment calculated as the sum of its initial cost and the present value of expected future cash flows. A positive NPV indicates that the project should be profitable, assuming that the estimated cash flows are reasonably accurate.