1. DeWalt is a tool manufacturer that has clients in three segments in Greensboro: 5,600 DIYers, 4800 Hobbyists, and 1200 contractors. DeWalt makes the following in revenue from each segment monthly: $200, $375, and $1500, respectively. The costs to serve each segment on average are: $65, $85, and $400, respectively. The retention rates for the segments are 70%, 79%, and 85% respectively. Assuming an annual discount rate of 5%, calculate the following: a. CLV for each segment. b. Suppose the company decides that it would like to invest $2,500,000 next year on loyalty programs to increase the retention rate. How much would the retention rate need to increase to for each segment if the whole sum were spent in that segment? c. Instead of spending on retention, let us say they are going to spend it on advertising online to 1000 customers in the local area. For each segment, how many customers would they have to acquire to breakeven? (hint: calculate Breakeven acquisition rate for each segment and multiply by target size). d. Imagine that growth rates in contribution are different for each segment. They are 10%, 3%, and 8% respectively. Recalculate CLV for each segment. Which segment looks the most attractive now