CFA CFA General Finding Net Present Value from Career Earnings

Finding Net Present Value from Career Earnings

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    • Avatar of Fenix26Fenix26
        • Undecided

        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.


      • Avatar of Stuj79Stuj79
          • CFA Charterholder

          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:

          Just make sure you input the after tax, inflation adjusted earnings  each year in the cash flow worksheet.

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