Hi.

I am confused on how the NPV calculates into the Customer Lifetime Value. I have followed the math of this sheet until this point. And my personal class notes do not follow these calculations to this sheet for calculating this number.

the CLV per my class:

Margin*(Retention/(1+Interest rate-Retention)) - Acquisition cost.

I am trying my very best to wrap my head around this to understand it better.

Thank You!!!

Reference Tuscan Lifestyles Spreadsheet: https://www.coursehero.com/file/21774699/Tuscan-Lifestyles-Spreadsheet-Case-Study/?utm_source=responsys_onboard&utm_medium=email&utm_campaign=tools-answer-this-doc&utm_term=student#/doc/qa