APPLICATION OF NET PRESENT VALUE ANALYSIS TO SHORT-TERM PERSONAL FINANCIAL DECISIONS

Akhunova , Elena

Innovation science and technologiy · 2026-yil

Annotatsiya

Personal finance and financial literacy play an important role in promoting individual financial well-beingand sustainable socio-economic development. In modern conditions, individuals regularly make financial decisions related toeducation, consumption, savings, investments, borrowing, and other aspects of personal financial management. Improving thequality of such decisions requires not only financial knowledge but also the application of quantitative methods for evaluatingtheir economic efficiency.The purpose of this study is to examine the applicability of the Net Present Value (NPV) method in personal finance andto evaluate its usefulness as a tool for supporting financial decision-making by individuals and households. The study is basedon a review of academic literature on personal finance, financial literacy, and investment appraisal methods, as well as on theanalysis of several practical examples reflecting typical personal financial decisions.The findings demonstrate that the NPV method can be effectively applied to a variety of personal financial decisions,including investments in education, professional development, digital services, and income-generating assets. Particularattention is paid to the influence of discount rates and future cash flow estimates on calculation results. The study shows thatthe Net Present Value method contributes to more informed financial planning and supports rational financial decision-making.The results confirm that the application of the NPV method may serve as an effective tool for improving financial literacyand enhancing personal financial management practices.

Maqola ma’lumotlari
MualliflarAkhunova , Elena
JurnalInnovation science and technologiy
Nashr sanasi2026-06-01
Jild2
Son6
TilIngliz
DOI10.5281/zenodo.20848518

Kalit so‘zlar

personal finance, financial literacy, Net Present Value (NPV), investment appraisal, financial decision-making, discounted cash flow analysis, time value of money

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