What is the formula for CLV $($customer lifetime value$)?$ Denote $($label$)$ all variables in the formula, including the acquisition cost.

Consider a franchisor that is buying a franchisee under these terms:

Franchisee brings in annual margins of $$250,000.$

Retention rate, $r=70\%$

Market Growth rate, $g=5\%$

Discount $($interest$)$ rate, $i=10\%$

Acquisition cost $($AC$)$ for franchisor $=$$$500,000$

a$)$ Under the terms above, compute the CLV$.$

b$)$ What is the CLV is $r=80\%,$ keeping all else same.