4) A wholesaler just secured a contract for $100,000 in gross sales a year to a new client. Assuming the Net Profit Margin averages 20% on every sale by the wholesaler and they now expect to supply this company for 12 years, determine: (8 total)

The Net profit per year expected to be realized from this new client.

The CLTV of the new client for twelve years using the Easy Method of just calculating future (net) profits.

The CLTV of the team using the Simple Formula, with a churn of 9%

The CLTV of the team using the Traditional Formula with a 9% churn and a cost of money (interest rate) of 7% p.a.

The CLTV of the team using DCF over twelve years at 7% compounded annually, assuming net revenues are what you calculated in part a (use as PMT).

Company 2018 (Sales in dollars) 2018 Market Share (%) 60% 2019 (Sales in dollars) 2019 Market Share (%) 4734% Blue Orange Red $100,000 $100,000 Totals $400,000 100% $500.000 100% Company 2018 (Sales in dollars) 2018 Market Share (%) 60% 2019 (Sales in dollars) 2019 Market Share (%) 4734% Blue Orange Red $100,000 $100,000 Totals $400,000 100% $500.000 100%