Question: Using the information below, rank the two customers in terms of customer lifetime value. Use a discount rate of 8 percent and treat the average

Using the information below, rank the two customers in terms of customer lifetime value. 

Avg. Profit Margin Avg. Annual Sales Expected Lifetime $3,500 10 years 15 % Customer A: Customer B: $4,000 8 years 14 %


Use a discount rate of 8 percent and treat the average sales figures as annuities.

Avg. Profit Margin Avg. Annual Sales Expected Lifetime $3,500 10 years 15 % Customer A: Customer B: $4,000 8 years 14 %

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