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(e) Assume the churn rate with contracts is 1.8% and churn rate without contracts is 6.3%. Calculate the annual life time value with and without
(e) Assume the churn rate with contracts is 1.8% and churn rate without contracts is 6.3%. Calculate the annual life time value with and without contract (Keeping all other numbers same: AC = 370, interest rate 5%, monthly ARPU = $52 and Monthly cost to serve = $30). (2 points) Now, assume the churn rates change to 2.6% with contract and 5.7% without contracts. What would be the customer life time value with and without contract (all the same as above question)? (3 points) (e) Assume the churn rate with contracts is 1.8% and churn rate without contracts is 6.3%. Calculate the annual life time value with and without contract (Keeping all other numbers same: AC = 370, interest rate 5%, monthly ARPU = $52 and Monthly cost to serve = $30). (2 points) Now, assume the churn rates change to 2.6% with contract and 5.7% without contracts. What would be the customer life time value with and without contract (all the same as above question)? (3 points)
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