How much is the Customer Lifetime Value? (Select best answer)

Assumptions: Retention Rate= 75%, Average annual customer purchase $20,000, 30.2% Contribution Margin, Annual Fixed costs $100,000 ($5,000 por customer), i=Cost of Capital=.10, Growth=0, no new cash investments.

a.

0 or less (Negative value)

b.

100

c.

500

d.

750

e.

1000

f.

2000

g.

3000

h.

4000

i.

5000

j.

6000

k.

7000

l.

8000

m.

9000

n.

9500

o.

10000 or ove