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Hint: The CLV of a customer is their NPV of GC minus their NPV of Marketing Costs. (Refer notes for formula) Step 1: Calculate the
Hint: The CLV of a customer is their NPV of GC minus their NPV of Marketing Costs. (Refer notes for formula) Step 1: Calculate the probability of the customer being alive, P (alive) for each mo then calculate the Net Present Value of GC using the formula: T
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Authors: Richard D De Veaux, Paul D Velleman, David E Bock
4th Edition
