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Imagine you started your own taxi business in Toronto. The average customer takes approximately 3 rides and spends $70 a month. For each ride, 50%
Imagine you started your own taxi business in Toronto. The average customer takes approximately 3 rides and spends $70 a month. For each ride, 50% of the fare goes to the driver, and $2 goes to the administrative and maintenance costs. Assuming 36% of riders find alternative travel arrangements and don't use the taxi company the following year and the discount rate is 3% per year. What is the CLV?
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