What is the customer lifetime value of customer Emma Stone for the first three years of the
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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 |
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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