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Assume the annual profit from a credit-card customer is year 1 $155, year 2 $155, year 3 $155, year 4 $155, year 5, $155,


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Assume the annual profit from a credit-card customer is year 1 $155, year 2 $155, year 3 $155, year 4 $155, year 5, $155, year 6 $200, year 7 $250. Each year there is a 40% chance of losing the customer and the discount rate is 15%. It costs $250 to acquire the customer. What is the Customer Lifetime Value of this customer for the first 6 years?

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