Some healthcare businesses, particularly not-for-profit providers, have the goal of producing social services along with commercial services. For such firms, the proper analysis of proposed projects must systematically consider the social value of a project along with its pure financial, or cash flow, value. When social value is considered, the total net present value (TNPV) of a project can be expressed as follows: TNPV = NPV + NPSV. Describe the net present social value (NPSV) Model of capital budgeting.
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