Question: From the information given, rank the customers in terms of their lifetime value. Use a discount rate of 6 percent and treat the average annual

From the information given, rank the customers in terms of their lifetime value.

From the information given, rank the customers in terms of

Use a discount rate of 6 percent and treat the average annual sales figures as annuities. Should any of these customers befired?

AVG. ANNUAL SALES AVG. PROFIT MARGIN EXPECTED LIFETIME Customer A: Customer B Customer C $2,500 $4,000 $1,200 17% 12 % 30 % 8 years 6 years 12 years

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