Company A is currently evaluating the potential acquisition of exclusive advertising rights on the front page of a social network search engine, PBM. Under this proposed agreement, Company A would make an initial payment of $15 million to PBM upon the agreement's commencement. Additionally, they would allocate an average daily advertising budget of $15,000 to PBM for a full year. In return, Company A's brand would enjoy exclusive and prominent placement on numerous pages within PBM for a duration of one year. Specifically, Company A anticipates its presence on 60% of PBM's 50 million daily page views. According to industry estimates, it is believed that 0.25% of each page view on PBM would result in a visit to Company A's website for the entire year of the agreement. Drawing from Company A's past experiences, approximately 1.0% of visitors to their website make purchases, including books and other merchandise. Despite Company A's typical customer retention rate exceeding 90%, there is a concern that customers acquired through PBM's site may have a retention rate as low as 70%. The average order value on Company A's website is $100, with a 30% gross margin per order and a 10% cost of capital. Considering these factors, Company A's CFO is apprehensive about the potential profitability of this deal. In light of this information and assuming that customers acquired at the end of the year hold the same value as those acquired at the beginning of the year, along with a discount rate of 10%, what is your recommendation?Please make your calculations clear. Answers without proper quantitative justifications will not receive any marks. Q4-2 [10 points] Alberts and Bettys purchase logs of coffee from First Cup, a cafe, are provided below. Calculate the customer lifetime value of each customer [5 points]. Which customer should First Cup target based on customer lifetime value only [5 points]? Please make your calculations clear. Answers without proper quantitative justifications will not receive any marks. Albert Betty Purchase Amount per Occasion $2.50 $4.00 Number of Purchase Occasion per Month 10 12 Number of Years of being a Customer 10 5