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Use the information below to respond to the next FOUR (4) questions: DirecTV is contemplating offering customers who switch from Comcast, a prepaid VISA card.
Use the information below to respond to the next FOUR (4) questions: DirecTV is contemplating offering customers who switch from Comcast, a prepaid VISA card. However, they need to estimate the value of the prepaid VISA card they can offer. The estimated menthly contribution per customer is $70. Based on a recent analysis of their customer dato, they have determined that they lose approximately 8% of their customers each year. Based on analysis of their past customers, DirecTV has estimated that each new customer is worth approximately $7,000 over their expected purchase lifetime. 7. Using the information above, determine the maximum value of the prepaid VISA card that DirecTV can spend to ocquire a customer. (2 points)
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