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DirecTV is contemplating offering customers who switch from Comcast, a prepald VISA card. However, they need to estimate the value of the prepaid VISA card

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DirecTV is contemplating offering customers who switch from Comcast, a prepald VISA card. However, they need to estimate the value of the prepaid VISA card they can offer. The estimated monthly contribution per customer is $60. Based on a recent analysis of their customer data, they have determined that they lose approximately 12% of their customers each year. Based on analysis of their past customers, DirecTV has estimated that each new customer is worth approximately $5,600 over their expected purchase lifetime. - Using the information above, determine the maximum value of the prepaid VISA card that DirecTV can spend to acquire a customer. ( 2.5 points) Information for Next Year (Use this for the Next 2 Questions): DirecTV is anticipating that next year, they will likely be able to only able to retain 90% of their customers, due to reduced competitive activity from other cable and satellite service providers. - Assuming that the same prepaid VISA card will continue to be offered, what is each customer now worth over to DirecTV over their expected purchasing lifetime. ( 2.5 points) - For the next year, if DirecTV's discount rate is 9%, then calculate the CLV incorporating the time value of money. ( 2 points)

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