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please help 18 In this example, the following assumptions have been made The average customer cost is $7(C) The revenue stream from the customer is

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In this example, the following assumptions have been made The average customer cost is $7(C) The revenue stream from the customer is $30 in each period (R) The discount rate of 10%(t) (start to apply at year 2 ) Retention rate of 80%(p) It costs $20(e,g. salaries and wages of the sales team, but not commissions) to acquire a customer (A). This acquisition cost is a fixed cost. What is the lifetime value of this customer at the end of year 2 and year 5 ? Year 2: \$16, Year 5: \$41 Year 2: \$20, Year 5:$47 Year 2: \$24, Year 5: \$44 Year 2: \$18, Year 5:$50 Year 2: \$22, Year 5: \$39

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