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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
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