The marketing acquisition costs and the costs to retain customers are below as well as the orders per customer, average order value and variable costs. What is the net present value (NPV) of the future profits of these customers and the lifetime value per customer (CLV) from the below situation (hint use your spreadsheet exercise from Marketing ROI class)?

	Acquisition YR	First	Second	Third	Fourth
	Year	Year	Year	Year	Year
Prospects/ Customers	75,000	45,750	29,738	20,816	16,237
Acquisition/ Retention Rate going into Following Year	61%	65%	70%	78%	97%
Orders per Year	0	4.2	2.1	2.8	3.7
Avg Order Size	$0	$60	$95	$100	$102
Total Revenue
Variable Costs	0%	65%	65%	65%	64%
Cost of Sales	$0
Acquisition Cost per customer	$35	$0	$0	$0	$0
Retention Costs	$0	$37	$27	$21	$15
Marketing Costs	$2,625,000
Total Costs	$2,625,000
Gross profit less Marketing costs	($2,625,000)
Present Day	($2,625,000)
Present Value of Future Cash Flows
Net Present Value
Customer LTV
Discount Rate	0.16

NPV = $2,481,447 CLV= $54.18

NPV= $2,451,446, CLV = $53.58

NPV = $2,574,320 CLV= $55.44

NPV = $2,451,446, CLV= $58.21