Q4 The AlphaPure, a company that markets water purifier systems for the home spent $2 million on marketing efforts last year. Senior executive estimates that about 50% of its marketing activities were focused on attracting new customers, and last year they sold 10,000 new purifier systems as a result. The AlphaPure purifier system is priced at $150 which comes with enough filters that last an entire year, but customers will have to purchase $50 worth of filters annually after the initial purchase. About 75% of customers end up repurchasing the filters annually. The margins for the system and filters are 20% and 80% respectively, and AlphaPure uses a 4-year planning horizon in its strategic planning (i.e. it assumes the average customer only lasts 4 additional years after the initial acquisition). Internally, AlphaPure uses 10% as its discount rate A. Calculate the CLV for an average customer for AlphaPure. Please show your calculations for full credit. (5 pts) 1 2 3 4 Year Revenue Contribution Retention Rate Expected Profit NPV Cust Acq Cost CLV per Customer Q4 The AlphaPure, a company that markets water purifier systems for the home spent $2 million on marketing efforts last year. Senior executive estimates that about 50% of its marketing activities were focused on attracting new customers, and last year they sold 10,000 new purifier systems as a result. The AlphaPure purifier system is priced at $150 which comes with enough filters that last an entire year, but customers will have to purchase $50 worth of filters annually after the initial purchase. About 75% of customers end up repurchasing the filters annually. The margins for the system and filters are 20% and 80% respectively, and AlphaPure uses a 4-year planning horizon in its strategic planning (i.e. it assumes the average customer only lasts 4 additional years after the initial acquisition). Internally, AlphaPure uses 10% as its discount rate A. Calculate the CLV for an average customer for AlphaPure. Please show your calculations for full credit. (5 pts) 1 2 3 4 Year Revenue Contribution Retention Rate Expected Profit NPV Cust Acq Cost CLV per Customer