Assume that a firm has a retention rate of 50% and a profit flow of USD 500 per year, during a 5 year period. The discount rate is 10%.

Choose

a. 1460,3

b. 2084,9

c. 898,9

d. 611,0

e. 2500

A firm has had a steady profit flow of USD 500 from your company, but they are upgrading into a new, more profitable product range from next year on. This new deal will be 25% more profitable to you than the current one.

After quite a long customer relationship, the firm has a retention rate of 80%, for a 5 year period. The discount rate is 10%. Calculate the LTV, for this customer (for 5 years)

a. 3000

b. 1700,40

c. 638,7

d. 2481,2

You are running an e-commerce store, and a new customer has just made you an order for 250 . You want to calculate its customer lifetime value, for estimating the marketing spend for his and customers alike.

You know, that a if a customer is satisfied, they usually double their orders for next years.

However, a typical customer retention rate in e-commerce is 30%, and the discount rate is 20%.

What is the CLV for this customer?

choose

a. 416

b. 1544,4

c. 2250

d. 500