Following is a lifetime-value analysis framework similar to that presented in the chapter. Perform the calculations necessary to complete row K:

Transcribed Image Text:

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Revenue A Customers 2,000 B Retention rate 30% 40% 55% 65% 70% C Average yearly sales $250 $250 $250 $250 $250 D Total revenue Costs E Cost percentage 50% 50% 50% 50% 50% F Total costs Profits G Gross profit H Discount rate 1 1.15 I NPV profit J Cumulative NPV proft K Lifetime value per customer - - -