Potential consumers of your product can be divided into 2 segments Oldsters and Youngsters. The key LTV characteristics of these segments concerning the product you sell are as follows:

	Oldsters	Youngsters
Number in segment	500	100
Profit you can make per person, each period	$100	$200
Cost of acquiring a person as a customer	$200	$300

Segment	# buying at start	# still buying after 1 period	# still buying after 2 periods	No more data is available concerning the 3rd or later periods, so assume consumers churn at the same rate in subsequent periods
Oldsters	500	450	405
Youngsters	100	80	64

1. Using an average churn rate and no discounting, what is the LTV of an individual in each segment?
2. If the discount (interest) rate is 10% per period, what is the LTV of an individual in each segment?
3. If you were asked to select either the youngsters or oldsters as a target market, would you consider anything else in the data above in addition to the LTVs? Briefly explain.