How to calculate opportunity cost of future salary?

[JEDI]

Lets says i have a 6yr option contract to do something like tech support or dog walk or be a CIA spy or whatever. (at the end of each yr, either party has the option of walking away w/o penalty.)

yr1: will make $30k
yr2: 37k (23% raise)
y3: 44k (19% raise)
y4: 52k (19%)
y5: 59k (13%)
y6: 80k (36%!!)

(I'm pulling #'s from the air.)

if i was to find another job at the end of yr2, how much would it take for me to walk away?

 

[Gibson486]

Didn't you just answer the question? I mean, if all it takes is money for you to walk away, I'd imagine you have already calculated everything. Also, how do you know what to epect in terms of raises? Why not just tough it out and put yourself on the market every year and see what people offer. No one said you have to leave if you do that.

 

[Capt Caveman]

Create a spreadsheet with your numbers.

 

[halik]

Originally posted by: JEDI
Lets says i have a 6yr option contract to do something like tech support or dog walk or be a CIA spy or whatever. (at the end of each yr, either party has the option of walking away w/o penalty.)

yr1: will make $30k
yr2: 37k (23% raise)
y3: 44k (19% raise)
y4: 52k (19%)
y5: 59k (13%)
y6: 80k (36%!!)

(I'm pulling #'s from the air.)

if i was to find another job at the end of yr2, how much would it take for me to walk away?

calculate the NPV of job one, compare to NPV of job 2