What is the customer lifetime value of customer Emma Stone for the first three years of the customer relationship?

Initial acquisition cost	$700
n = number of years retained	3
r = retention rate for each of the n years retained	0.8
Cost of capital	0.1
M1 Margin from customer in year 1	$500
M2 Margin from customer in year 2	$600
M3 Margin from customer in year 3	$650
c1 cost	$120
c2 cost	$100
c3 cost	$100

Question content area bottom

Part 1

A.

$940.49

B.

$240.49

C.

$1,380.00

D.

$2,080.00