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Q2. Tony Auto Services have 4 clients who buy cars regularly from them. In the past year, they bought the following number of cars at

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Q2. Tony Auto Services have 4 clients who buy cars regularly from them. In the past year, they bought the following number of cars at the indicated average prices. Assume similar cash flow streams from all 4 clients will last for only 3 years and cost of goods sold per transaction is $10,000. Average advertising costs are $10.000 per client per year and a cost of capital of 10%. What is total profit of this customer base (4 clients) per year? What is the CLV of this customer base? Client Average Price ('000) Qty A 25 8 B 30 3 C 15 10 D 50 3 Hint: Compute the margin and then apply the formula discussed in class. 2.1 What is the NPV of customer A? 1 point 2.2 What is the NPV of customer B? 1 point 2.3 What is the NPV of customer C? 1 point 2.4 What is the NPV of customer D? 1 point

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