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Alex runs a business that sells the surfboard. He wants to understand their customers' value. After considering a typical customer's revenue contribution, the cost to

Alex runs a business that sells the surfboard. He wants to understand their customers' value. After
considering a typical customer's revenue contribution, the cost to serve the customer, the discount rate, and
the customer retention rate, he calculated that the expected value of this customer in period N is $150. He
assumes that this customer makes the same revenue contribution across all periods and that the cost to
serve this customer is the same across all periods. With a discount rate being 5% and a retention rate be 70%,
what is the expected value of the customer in period N+1? Choose the closest amount below.
a. $110
b. $100
c. $130
d. $140
e. $120
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