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For the information given, rank the two customers in terms of their customer lifetime value. Avg. Annual Sales Avg. Profit Margin Expected Lifetime Customer A:
For the information given, rank the two customers in terms of their customer lifetime value.
Avg. Annual Sales Avg. Profit Margin Expected Lifetime
Customer A: $4,500 15 % 10 years
Customer B: $4,000 14 % 8 years
Use a discount rate of 8 percent and treat the average sales figures as annuities.
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