Hi everyone, I'm currently working on a project where I am to find the net present value of a hypothetical career earnings. I figured out how to do it on excel, but I need to be able to do it on the BA II Plus calculator. The situation goes like this... An employee gets a lump sum salary at the end of each year. The employee's salary increases 5% each year, and his current salary is $75,000. He has a tax rate of 30%. He plans to retire after 30 years of work. Thanks!!

You can use the cash flow function on a BA II calculator, although you may have to enter each year's salary individually saying as it changes by inflation each year.Heres a vid to show you how to use it:https://m.youtube.com/watch?v=TTyp78GKrdUJust make sure you input the after tax, inflation adjusted earnings each year in the cash flow worksheet.

A CFA General Discussion About Finding Net Present Value From Career Earnings

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This topic has 1 reply, 2 voices, and was last updated Sep-185:16 pm by Stuj79.

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- Fenix26
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  - Undecided
  20 Sep 2018 at 7:32 am
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  Hi everyone,
  
  I’m currently working on a project where I am to find the net present value of a hypothetical career earnings. I figured out how to do it on excel, but I need to be able to do it on the BA II Plus calculator.
  The situation goes like this…
  
  An employee gets a lump sum salary at the end of each year. The employee’s salary increases 5% each year, and his current salary is $75,000. He has a tax rate of 30%. He plans to retire after 30 years of work.
  
  Thanks!!
- Stuj79
  Participant
  - CFA Charterholder
  21 Sep 2018 at 5:16 pm
  Up
  2
  ::
  You can use the cash flow function on a BA II calculator, although you may have to enter each year’s salary individually saying as it changes by inflation each year.
  
  Heres a vid to show you how to use it:
  
  https://m.youtube.com/watch?v=TTyp78GKrdU
  
  Just make sure you input the after tax, inflation adjusted earnings each year in the cash flow worksheet.
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