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Verizon is known to spend $500 to acquire a new mobile phone subscriber and $100 per year to provide services for a customer on average.
Verizon is known to spend $500 to acquire a new mobile phone subscriber and $100 per year to provide services for a customer on average. The average monthly churn rate of the industry is known as 2.5% and the interest rate (discount rate or IRR) per year is 10%. When an average customer pays $60 per month to Verizon for one s subscription, what is the CLV of the customer for the next three years? Fill out ALL cells in the table below. * Round a number to two decimal places if necessary, and pay special attention to positive (+) numbers and negative (-) numbers. Year 2 Year 3 Year 0 2022 Year 1 2023 2024 2025 Revenue 720 10 (1) (Gross Margin) Total (2) marketing costs - Acquisition Cost Maintenance 0 Cost O 100 * Round a number to two decimal places if necessary, and pay special attention to positive (+) numbers and negative (-) numbers. Year 0 Year 1 Year 2 Year 3 2022 2023 2024 2025 Revenue 0 720 0 0 100 620 0.34 303.8 210.8 0.75 (1) (Gross Margin) Total (2) marketing costs - Acquisition Cost Maintenance 0 Cost (3) Value #1 -500 (4 Rentention rate (5) Value #2 Discount (6) factor (7) (8) Present Value CLV for the next 3 years
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