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.
Definition of net present value NPV. One way of calculating the potential return from an investment. This is basically the current value of the investment plus the present value of future cash flows, minus the initial cost of the investment plus the present value of any future costs. Present value is calculated by applying an appropriate discount rate to the expected future returns and costs.