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From the information given, rank the customers in terms of their lifetime value. Use a discount rate of 4 percent and treat the average annual

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From the information given, rank the customers in terms of their lifetime value. Use a discount rate of 4 percent and treat the average annual sales figures as annuities. Average Annual Sales Average Profit Margin Expected Lifetime Customer A $2.500 15% 8 years Customer B $1,800 25% 12 years (1) [40 points) Net Present Value of A = (2) [40 points) Net Present Value of B = [20 points) Based on these calculations, Customer( expected lifetime value. ) is the more important customer because of the higher

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