CLV Example

$2,000$ new customers were attracted at a cost of

$$20$ each and then tracked over a $3-$year period $(T$

$=3).$ The average annual purchase was $$1000\mathrm{.}00,$

with a gross margin of $50\%$ and annual per capita

marketing expense of $$100\mathrm{.}00.$ All$-$Star uses a

discount rate of $10\%,$ and the retention rate was

$40\%.$

What is All$-$Star's $3-$year CLV for the Birthday Club?