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You run a health club and want to estimate the lifetime customer value of your clients. You estimate that your typical customer spends $37 per

You run a health club and want to estimate the lifetime customer value of your clients.

You estimate that your typical customer spends $37 per month, which is composed of membership fees, group classes and personal training. The average gross margin for these services is 57%. The retention rate for clients is estimated to be 54%. The health club uses a discount rate of 6% in evaluating investments.

What is the current Lifetime Customer Value for health club members?

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