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An Insurance Company wants to calculate the CLTV of a client who is expected to generate new sales of $375,000 per year for an expected
An Insurance Company wants to calculate the CLTV of a client who is expected to generate new sales of $375,000 per year for an expected 12 years. If the margin (SP-VC) on this sales is expected to be 22%. Determine the CLTV for the client in the four ways using the following relevant additional information:
a) Easy Method
b) Simple Formula (assume a 7% churn)
c) Traditional formula (using 7% churn and an interest rate of 10%)
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