I am not sure that NPV is the only calculation you would need to do. If you do a search for "NPV calculator" on google, you will find dozens that will help you run the numbers.That being said, should you not also have to consider the difference between what his current pay is and the pay of the civilian job he would be getting three years early? Would three more years on the civilian job also yield larger pension or more retirement income?IMO, unless $4000 a year is going to make or break retirement, I think I might focus more on quality of life issues. Having been on active duty, my decision to stay or not stay another three years might have little to do with pay opportunities and likely would have had more do with with family and desired lifestyle.
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