subject
Business, 28.05.2021 15:50 devin3634

Compute the customer lifetime value (CLV) of Customer 222 based on the data below for the first six years of the customer relationship. Costs (Ct) were incurred to promote customer retention at a rate of 0.8 in years 1 through 6. Initial acquisition cost $2,400
n = number of years retained 6
r = retention rate 0.8
Cost of capital 0.1
Mt = margin from customer in year t
M1 $1,000
M2 1,200
M3 1,300
M4 1,400
M5 1,500
M6 1,600
C1 240
C2 200
C3 200
C4 200
C5 160
C6 160

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 15:10
On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.
Answers: 2
question
Business, 22.06.2019 21:00
You have $5,300 to deposit. regency bank offers 6 percent per year compounded monthly (.5 percent per month), while king bank offers 6 percent but will only compounded annually. how much will your investment be worth in 17 years at each bank
Answers: 3
question
Business, 22.06.2019 21:30
Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?
Answers: 1
question
Business, 22.06.2019 21:30
Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is:
Answers: 1
You know the right answer?
Compute the customer lifetime value (CLV) of Customer 222 based on the data below for the first six...
Questions
question
Computers and Technology, 13.12.2019 23:31
Questions on the website: 13722361