Question: Using the customer information in problem 1, recalculate the lifetime values using average profit margins of 9%, 11%, and 15% respectively, and a discount rate

Using the customer information in problem 1, recalculate the lifetime values using average profit margins of 9%, 11%, and 15% respectively, and a discount rate of 4 percent. Answer part b. again. Has anything changed?

Data from 1

Avg. Annual Sales Avg. Profit Margin Expected Lifetime 18 % $108,000 Customer A: 6 years 22 % 15 years Customer B: $82,0

Avg. Annual Sales Avg. Profit Margin Expected Lifetime 18 % $108,000 Customer A: 6 years 22 % 15 years Customer B: $82,000 $29,000 31% 26 years Customer C:

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