A cable company spends on average $600 to acuire a customer. Annual maintanance costs per customer is $45; record-keeping and billing costs are $30 per customer per annum.

Price of the basic service package is $30 per month. Typically, 40 percent of the customers buy a premium package taht costs $50 per month; 10 percent buy the super premium package that costs $80 per month.

Over time, 80 percent of customers remain with the company from one year to the next. Discount rate= 0.12

A. What is the average CLV fpr all customers?

B. What is the CLV of a super premium customer?

The given formula for CLV is:

CLV = m * r / (1+d-r) - AC(Acquisition Costs)