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Score: 0 of 3 pts 7 of 18 (3 complete) HW Score: 9.51%, 4.76 of 50 pts E6-24 (similar to) Question Help Consider the following
Score: 0 of 3 pts 7 of 18 (3 complete) HW Score: 9.51%, 4.76 of 50 pts E6-24 (similar to) Question Help Consider the following data: E: (Click the icon to view the data.) Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (C) were incurred to promote customer retention to a rate of 0.6 in years 1 through 6. Begin by determining the general formula for calculating customer lifetime value (CLV). (Abbreviation not already defined: Cost of capital = i) A Data Table Customer 421 $500 (M-9) *(1 +i)=1 --Initial acquisition cost (retention rate) Initial acquisition cost n = number of years retained r = retention rate for each of the n years retained Cost of capital M = margin from customer in yeart 0.6 0.1 t" (Initial acquisition cost) x (retention rate)-1 CLV = X -- (M+ - 04) t=1 (1+i) $240 390 IMM; 345 t=" (M-C4) CLV = t=1 (retention rate)-1 - Initial acquisition cost (1+i) CLV (M+ -) * (retention rate) - - Initial acquisition cost (1 +i) Click to select your answer(s) and then click Check Answer. Print Done parts Clear All 2 remaining Check
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