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.
To increase the NPV to zero, the MEC must be below the going interest rate used to calculate the original NPV. Now that the data inputs are defined, the next step is to build the NPV model, seen in cells A17:E26 of Figure 1. Critics of NPV state that it is inappropriate for use under uncertainty situations.