Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

rephrase this...a. What is the estimated CLV for $treaminNow, assuming the best-case scenario for churn and margin? (2 points) Solving for best-case scenario. Calculation: Since

rephrase this...a. What is the estimated CLV for $treaminNow, assuming the best-case scenario for churn and margin? (2 points) Solving for best-case scenario. Calculation: Since a retention rate is not given, we need to find that. Retention Rate = 1 - Churn Rate = 1 - 0.30 = 0.70 Using the CLV Formula; m*(r/ 1 + i - r). Where m = margin, i = interest rate (in this case, discount rate), and r = retention rate. 19*(0.70/ 1 + 0.10 - 0.70) = $33.25 The estimated CLV for $treaminNow is $33.25 for best-case scenario

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N. Gregory Mankiw, William M. Scarth

5th Canadian Edition

1464168504, 978-1464168505

More Books

Students also viewed these Economics questions

Question

Salary (if known)

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago