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CLV1: Calculate the customer lifetime value for the first 5 years of the relationship if the annual profit contribution of a customer is $500.
CLV1: Calculate the customer lifetime value for the first 5 years of the relationship if the annual profit contribution of a customer is $500. Make the following assumptions: Customer signs a contract with the company for 3 years. Discount rate is 10% The payment is made at the beginning of the month The retention rate after the end of the three year contract is 80% Also provide the formula you use for calculating the CLV.
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