Question 1: What is the maximum amount that should be paid to acquire a new 'Medium Size Business' customer?

Background: Staplers Ofce Supgy Staplers, an ofce supply store, is developing its strategic plan for next year. A recent segmentation analysis of their customers by the marketing team has revealed an underserved segment, Medium Size Business with 25-100 Employees. The marketing manager would like to acquire more :ustomers in this segment, but she does not want to overpay to acquire them. Assume the following about 'Medium Size Businesses' and then answer the question below. Assumions: Constant Annual Operating Profit (excluding Acquisition Costs) = $500 Constant Annual Retention Rate = 60% Constant Discount Rate = 20% Question 1: What is the maximum amount that should be paid to acquire a new 'Medium Size Business' customer