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The Gotham City News is moving to a paywall subscription service rather than a free news website with unlimited access. If subscribers would like to

The Gotham City News is moving to a paywall subscription service rather than a free news website with unlimited access. If subscribers would like to access more than ten articles per month, they will need to pay a monthly subscription fee of $24. However, if they are also weekly subscribers of the print edition of the newspaper, they receive a 60% discount on the on-line subscription rate. The monthly rate for the print edition of the newspaper is $26. Based on market research, the Times believes that 32% of the households that order the print edition will also order the online subscription. While there are basically no variable costs to the online version, the print edition does cost $22 per month to print and deliver to households.
Market research indicates that the average length a current print edition subscriber will continue subscribing is only 16 months if they choose to also purchase the online subscription. Under these assumptions, what is the expected 3 year CLV for a print edition subscriber who chooses to also subscribe to the online version? (Note: presume they continue for all 3 years with the online version).
CALCULATED VARIABLES:
both = $490
online = $864
print = $144
margin =$4
74 is INCORRECT.
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