Question
AOL bought customers from CD Now for $60 per customer. CD Nows annual retention rate was 60 percent and customers generated $15 of profit per
AOL bought customers from CD Now for $60 per customer. CD Nows annual retention rate was 60 percent and customers generated $15 of profit per year. Assuming an annual discount rate of 12 percent, evaluate AOLs purchase of CD Now customers. Assume profits occur at the end of each period.
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
