behavior in any of the other quarters.

Assignment Overview

When making your LTV calculations, use the quarterly attrition rates & repurchase rates presented earlier in the case. In addition, assume the following:

Each box of peels provides $$125$ in revenue to Goop if the customer is not a subscriber

Each box of peels provides $$112$ in revenue to Goop if the customer is a subscriber

Each box of peels costs Goop $$5\mathrm{.}67$ to manufacture

Each box of peels costs Goop $$1\mathrm{.}00$ to ship to the customer

Customers do not pay for shipping

Goop does not incur any marginal marketing costs or service costs in each quarter

Goop uses a $3\%$ quarterly discount rate when discounting future profits

All of these numbers were held constant during the $8$ quarters that Mendez collected data. There were no price changes, changes in manufacturing costs; etc.

Assignment Questions:

What is the LTV $($looking $8$ quarters out$)$ of