Compute the customer lifetime value of Customer 222 based on the data below for the first six years of the customer relationship. Costs (ct) were incurred to promote customer retention at a rate of 0.8 in years 1 through 3.

Initial acquisition cost $2,400

n = number of years retained 3

r = retention rate 0.8

Cost of capital 0.1

Mt = margin from customer in year t

M1 $1,000

M2 1,200

M3 1,300

c1 240

c2 200

c3 200