If the discount rate = 15% calculate the CLV of a customer that generates the following revenues: Year 1 $140 Year 2 $140 Year 3 $260 Year 4 $260 Year 5 $260. It cost $200 to acquire the customer.

Assume the annual profit from a credit card customer is year 1 125 year 2 125 year 3 150 year 4 150 year 5 150 year 6 200 year 7 200. Each year there is a 0% chance of losing the customer and the discount rate is 20%. It costs $250 to acquire the customer. What is the CLV of this customer.

BOTH QUESTIONS ASKING FOR CLV! (Customer lifetime value)