Question
BugKillers provides a quarterly pest control service for $93 a quarter. Its variable costs per service call are $21. Customers can cancel the service at
BugKillers provides a quarterly pest control service for $93 a quarter. Its variable costs per service call are $21. Customers can cancel the service at any time, and the firm has a quarterly attrition rate of 3%. Marketing spends $40 per year on customer retention. If the annual discount rate is 10%, what is the CLV of an existing customer?
Please show your work as I'm trying to learn the concept
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Cost Benefit Analysis Concepts And Practice
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
3rd Edition
0131435833, 978-0131435834
