Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Verizon is known to spend $500 to acquire a new mobile phone subscriber and $100 per year to provide services for a customer on
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. Revenue Year 0 2020 Year 11 2021 Year 2 2022 Year 3 2023 (1) (Gross 0 720 720 720 Margin) Total (2) marketing costs Acquisition 500 0 0 Cost o Maintenance 0 100 100 100 Cost (3) Value #1 -500 620 620 620 Rentention 0.34
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started