LL F G 3 4 1 22 F19 A X B Problem 2: fx C D E Your given avg annual sales, profit margin, & expected lifetime: a) Calculate the Profit for each Customer (A through C) 5 6 Avg Annual Sales Avg Profit Margin Expected Lifetime Profit 7 Customer A: $3,000 18% 7 8 Customer B: $4,100 11% 6 9 Customer C: $1,200 25% 9 10 11 12 b) Using the NPV caculation, calculate the NPV and Rank customer 13 14 Discount Rate= 0.05 15 16 NPV Rank 17 Customer A: 18 Customer B: 19 Customer C: 20 21 22 23 24 NPVa = Profit * ((1-(1+i)^-n)/i) 25