No. of Recommendations: 3
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.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.