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.
NPV, or âNet Present Value,â is used to evaluate a project or investmentâs present-day worth.Also known as Discounted Cash Flow (DCF), calculating NPV is a common economic and finance formula intended to determine compound interest in reverse.PV, or âNet Present Value,â is used to evaluate a project or investmentâs present-day worth.