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In determining the Customer Lifetime Value, the companys sales revenue was $20,000. Variable and other costs accounted for $16,000. With this pricing strategy, the company
In determining the Customer Lifetime Value, the companys sales revenue was $20,000. Variable and other costs accounted for $16,000. With this pricing strategy, the company was able to retain 90% of its customers. The current prime bank interest rate is 2.5% and the company used a 5% test interest rate. The company experienced an increase in sales and expected a growth rate of 5%. What is the customer lifetime value?
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