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Support SUPERTEL, a new Telecommunication company, in calculating the Lifetime Value per customer based on the following assumptions: Perform the necessary calculations (A THROUGH K

Support SUPERTEL, a new Telecommunication company, in calculating the Lifetime Value per customer based on the following assumptions: Perform the necessary calculations (A THROUGH K NEEDS TO BE CALCULATED):

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

A Customers

2,000

B Retention rate

30 %

40 %

55 %

65 %

70 %

C Average yearly sales

$250

$250

$250

$250

$250

D Total revenue

Costs

E Cost percentage

50 %

50 %

50 %

50 %

50 %

F Total costs

Profits

G Gross profit

H Discount rate

1

1.15

I NPV profit

J Cumulative NPV profit

K Lifetime value (NPV)

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