Netflix is offering standard video streaming service for $10/MONTH. For simplicity, let us assume

(1) the price does not change in the future

(2) the marginal cost of serving each customer and the cost of retention are 0

(3) the customer acquisition cost is the ONE MONTH of free trail

(4) discount rate is 10% (per YEAR)

(5) the YEARLY retention rate is 70%

Please compute the Customer Lifetime Value

Suppose Netflix issues a $10 rebate every 12 months to retains customers, and the retention rate rises to 80%. Is the Customer Lifetime Value increased or decreased?