$60 555 542 544 Estimate the LTV of a customer if the cash flow could be increased by 10% in each period. $40 $30 Value 520 -551 Average Profit per Credit Card Customer $0 --520 Present Present Cash Value of Period Flow of 51 Cash Flow 0 -551 1.000 --551.0 1 530 0.909 $27.3 2 $42 0.826 $34.7 3 544 0.751 533.0 4 549 0.683 $33.5 5 $55 0.621 $34.2 Net Present Value of Cash Flow 5111.7 * Appendix provides a table of present Value Estimate the LTV of a customer if the retention dropped to 3 years and the cash flows were 50% of the current values. -540 -560 0 1 2 3 4 5 -Years Customer Retained Discuss how the firm could address these issues. $60 555 542 544 Estimate the LTV of a customer if the cash flow could be increased by 10% in each period. $40 $30 Value 520 -551 Average Profit per Credit Card Customer $0 --520 Present Present Cash Value of Period Flow of 51 Cash Flow 0 -551 1.000 --551.0 1 530 0.909 $27.3 2 $42 0.826 $34.7 3 544 0.751 533.0 4 549 0.683 $33.5 5 $55 0.621 $34.2 Net Present Value of Cash Flow 5111.7 * Appendix provides a table of present Value Estimate the LTV of a customer if the retention dropped to 3 years and the cash flows were 50% of the current values. -540 -560 0 1 2 3 4 5 -Years Customer Retained Discuss how the firm could address these issues