An Internet Service Provider charges $19.95 per month. Customers pay before they could use the service. Variable costs are about $1.50 per account per month. With marketing spending of $6 per year, their attrition is only 0.5% per month. At a monthly discount rate of 1%, what is the CLV of a customer we intend to acquire? (Example 1 on Slide 7 and 8)

New Scenario: If the firm cuts retention spending from $6 to $3 per year, they expect attrition will go up to 1% per month. What is the new CLV?

Fill in the missing numbers $M=$ =$ $R=$ CLV=($ D/(( 1 + CLV=$ Round to a whole number