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Tess is the development manager for the Isabelle Stewart Gardner Museum in Boston, working on a new donor recruitment campaign. She was trying to decide
Tess is the development manager for the Isabelle Stewart Gardner Museum in Boston, working on a new donor recruitment campaign. She was trying to decide which type of donor to cultivate.
- Her first choice was ayounger, arts activewoman living in Boston.This type of woman was likely to give insmallerincrements, about$250per year, but, given her young age, could be expected to donate to the museum for the next15years. This type of donor costs$100to acquire, and$20per year for adminstrative & marketing communications costs.
- Her other choice was an elderly, charitably inclined, suburban woman. This type of woman gavebiggifts, on average around$2,500per year, but only could be counted on to give to the museum for2years. This type of donor requires a bit more attention, so it costs$500to acquire,and$20per year for adminstrative & marketing communications costs.
Using just this information (no variable costs, no discount rate), what is theDOLLAR DIFFERENCEbetween the younger donor's and the older donor's CLV?
Group of answer choices
$1,110
$850
$900
$1,000
$910
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