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

$0\mathrm{.}8$

Cost of capital

$0\mathrm{.}1$

M$1$ Margin from customer in year $1$

$$$$500$

M$2$ Margin from customer in year $2$

$$$$600$

M$3$ Margin from customer in year $3$

$$$$650$

c$1$ cost

$$$$120$

c$2$ cost

$$$$100$

c$3$ cost

$$$$100$

Question content area bottom

Part $1$

A$.$

$$$$1,380\mathrm{.}00$

B$.$

$$$$940\mathrm{.}49$

C$.$

$$$$240\mathrm{.}49$

D$.$

$$$$2,080\mathrm{.}00$