Question: Assume that a company calculates customer lifotime value (CLV) using a margin multiple. Assume the margin multiple is 2.5 and corresponds to an 80%

Assume that a company calculates customer lifotime value (CLV) using a margin

Assume that a company calculates customer lifotime value (CLV) using a margin multiple. Assume the margin multiple is 2.5 and corresponds to an 80% retention rate (r) with a 12% discount rate (1). Assume the estimated average monthly revenue of a customer is $125, and the estimated average monthly cost of a customer is $40. What is the CLV of the estimated average customer?

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