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(NPV). Comparisons between the NPV of the benefit and cost streams indicate whether a project is worthwhile. Note, however, that social costs of substance abuse are usually presented as the annual (net) cost, which is assumed to be broadly the same each year. They could be converted to an NPV, but that is not necessary because the streams do not change much through time. This means that an avoidable cost estimate based on an NPV is not comparable to the standard annual cost figure. To make them comparable, the NPV should be multiplied by the discount rate to convert the capitalised sum into the (weighted) average cost or benefit stream that the NPV generates.
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