Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you show the steps to solve the NPV of annual profit, Cumulative of annual profit, and NPV of Cumulative annual profit? Taking into account

Can you show the steps to solve the NPV of annual profit, Cumulative of annual profit, and NPV of Cumulative annual profit?

  1. Taking into account the time value of money and assuming that 100 percent of the customer segment will have experienced attrition once the net present value of annual profits per customer falls below 100, what is the lifetime value to MBC of the following customers? Assume that a customers lifetime extends up to and including the year in which the net present value of annual profits falls below 100.

image text in transcribed

B C D E F G H 1 J K L M Little Leaguers 1 2 3 4 5 6 7 8 9 10 11 12 13 Hourly Revenues Hourly Costs Hourly Margin # of Annual Hours Annual Margin Y Survival Rate Customer Acquisition Cost Annual Profit NPV of Annual Profit Cumulative Profit NPV of Cumulative Profit Year 1 6500 6000 500 10 5000 1 10000 -5000 -5000 -5000 -5000 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 4875 3656 25 2742.188 2056 641 1542 48 1156.86 867.6453 650.7339 488.0505 366.0378 274.5284 4500 3375 2531.25 1898.438 1423.828 1067.871 800.9033 600.6775 450.5081337.8811 253.4108 375 281.25 210.9375 158.2031 118.6523 88.98926 66.74194 50.05646 37.54234 28.15676 21.11757 10 10 10 10 10 10 10 10 10 10 10 3750 28125 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646 375.4234 281.5676 211.1757 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0 0 0 0 0 0 0 0 0 0 0 0 3750 2812.5 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646 375.4234 281.5676 211.1757 3409091 2324.38 1584.805 1080.549736.7377 502.3212 342.4917233.5171159 2162 108.5565 7401579 -1250 1562.5 3671.875 5253.906 6440.43 7330 322 7997.7428498.3068873.73 9155.297 9366.473 -1590.91 733 47112318.276 3398.824 4135.562 4637 883 4980.375 5213.8925373.108 5481.665 5555.68 B C D E F G H 1 J K L M Little Leaguers 1 2 3 4 5 6 7 8 9 10 11 12 13 Hourly Revenues Hourly Costs Hourly Margin # of Annual Hours Annual Margin Y Survival Rate Customer Acquisition Cost Annual Profit NPV of Annual Profit Cumulative Profit NPV of Cumulative Profit Year 1 6500 6000 500 10 5000 1 10000 -5000 -5000 -5000 -5000 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 4875 3656 25 2742.188 2056 641 1542 48 1156.86 867.6453 650.7339 488.0505 366.0378 274.5284 4500 3375 2531.25 1898.438 1423.828 1067.871 800.9033 600.6775 450.5081337.8811 253.4108 375 281.25 210.9375 158.2031 118.6523 88.98926 66.74194 50.05646 37.54234 28.15676 21.11757 10 10 10 10 10 10 10 10 10 10 10 3750 28125 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646 375.4234 281.5676 211.1757 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0 0 0 0 0 0 0 0 0 0 0 0 3750 2812.5 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646 375.4234 281.5676 211.1757 3409091 2324.38 1584.805 1080.549736.7377 502.3212 342.4917233.5171159 2162 108.5565 7401579 -1250 1562.5 3671.875 5253.906 6440.43 7330 322 7997.7428498.3068873.73 9155.297 9366.473 -1590.91 733 47112318.276 3398.824 4135.562 4637 883 4980.375 5213.8925373.108 5481.665 5555.68

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance In Construction

Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani

1st Edition

1444334778, 978-1444334777

More Books

Students also viewed these Finance questions