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.
Present Value and CAGR Formula. PV = FV / (1 + r)Y. CAGR = (FV / PV)1 / Y - 1. where PV is the present value (= starting principal), FV is the future value, r and CAGR are the annual interest rate, and Y is the number of years invested. The formula for present value is simple; just take the formula for future value and solve for starting principal: