A Japanese online specialty retailer called Matsusaka sells high quality beef. Their products are high price, more than (Japanese Yen) 50000/kilo (a kilo equals 2.2lbs ). The retailer targets two customer segments: Gourmet food enthusiasts (foodies) and Gift purchasers. Situation: Matsusaka has been a successful retailer for over 80 years and is still owner operated. The founder is long gone but his two grandchildren, Yuya Hishima (male, 40 years old) and Mariko Hishima (female, 34 years old) work well together and are looking to expand the business. Thanks to an innovative way to ship fresh meat and maintain its freshness for 50 hours without freezing, designed by a former Toyota engineer, the Hishimas are hoping to reach new customer segments. Mie Prefecture, where the Hishimas operate their business Matsusaka, is known for its Matsusaka beef, one of the 150 Japanese brands of the highest quality beef known all over the world. The new technology has truly revolutionized how fresh food retailers think about their business. The Hishimas decide to purchase a list of names from a broker for 180 Japanese Yen per name and send a fully colored, high-quality catalog once per month for a full year. Costs to produce the catalog amount to 48 Japanese Yen and to mail the catalog, 30 Japanese Yen. The response rate from the names on the list is 7.5% (foodies). Those who don't respond for a year will be dropped. The retention rate for foodies is 70%. Non-foodies respond at a rate of 5% to any type of print marketing material. Their retention rate is 60%. Foodies purchase 3 times/year at 6000 Japanese Yen each time. The margin on the products they purchase is 50% for Matsusaka. Non-foodies make 1 purchase /year at 15000 Japanese Yen. The margin on the products they purchase is 60% for Matsusaka. Questions: 1 Calculate the CLV for both segments (Foodies + Gift purchasers) for Years 1 through 5. (Don't use NPV, it is not necessary.) 6 points