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 (NPV): Net present value is the difference between the present value of cash inflows and the present value of cash outflows that occur as a result of undertaking an investment project.It may be positive, zero or negative.et present value (NPV): Net present value is the difference between the present value of cash inflows and the present value of cash outflows that occur as a result of undertaking an investment project.