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 thenet present value (NPV) of the future profits of these customers and the lifetime value per customer (CLV)from thebelow situation

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