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g Which of the following has a less attractive Customer Lifetime Value? (1+i) -1 i(1+i) NPVA = a NPVB = a Where:a = O Nursery
g Which of the following has a less attractive Customer Lifetime Value? (1+i)" -1 i(1+i)" NPVA = a NPVB = a Where:a = O Nursery A (1+i)" -1 i(1 + i)" O Nursery B = 22,000(.2) (1+.08)-1 .08(1+.08) = $16,000(.15) 899] = $4,400 (1+.08)5-1 08(1+.08)5 0.469 0.118 = $2,400 average annual profit, or the (annual sales) (profit margin) i = annual discount rate n = expected lifetime in years. = $17,488 2.172 0.254 = $20,522
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