Question: 1. Please calculate the CLV using the simple formula based on the following information: (Please show your calculations) a. Initial cost of acquisition=$557 b. Annual

1. Please calculate the CLV using the simple formula based on

1. Please calculate the CLV using the simple formula based on the following information: (Please show your calculations) a. Initial cost of acquisition=$557 b. Annual profit contribution per customer =$785 c. Customer retention rate=49% 2. Please calculate the missing values in the highlighted cells. Year 1 Year 2 Year 3 Year 4 Initial Cost of Acquisition $250 650 900 950 1200 215 270 285 360 100% 75% 60% 45% Annual Customer Revenue Costumer Costs Average Profit Customer Retention Rate Cumulative Retention Rate Likely Customer Profit Discount Rate CLV per year Cumulative CLV 1.0 1.03

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