a.Calculate the Customer Lifetime Values for Virgin if it plans to launch onlyContractbased plans in the market with a handset subsidy of $25 and fixed per minute usage charge of $ .20.

b.Should Virgin go with acontractoption because of higher customer lifetime value? Why or why not? What is the assumption that one would be making if one chooses option A just on basis of higher customer lifetime value? Would that assumption be realistic?(6 points)