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How much is the Customer Lifetime Value? Assumptions: Retention rate = 75%, average annual customer purchase $20,000, contribution margin of 30.2%, annual fixed costs $100,000

How much is the Customer Lifetime Value? 

Assumptions: 

Retention rate = 75%, 

average annual customer purchase $20,000, 

contribution margin of 30.2%, 

annual fixed costs $100,000 ($5,000 per customer), 

i = cost of capital = 0.10, 

growth = 0, without new cash investments.

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