A) Using the Retention Rate 83%, what is the Customer Lifetime Value? Assume the following: $20,000 Average Annual Sale per Customer, 30% Profit Margin, Annual Fixed costs $100,000 ($5,000 per customer), i = Cost of Capital = .08, Growth = 0.

B) If the Retention Rate changes to 88%, how much is the Customer Lifetime Value (NPV)? Assume the following: $20,000 Average Annual Sale per Customer, 30% Profit Margin, Annual Fixed costs $ 100,000 ($5,000 per customer), i = Cost of Capital = .08, Growth = 0.

C) If the cost of acquiring a new customer today is $500, and the first year only buys an average of $10,000 (with a 25% margin), how much is the Customer Lifetime Value (NPV)? Assume the following: Annual Fixed costs $100,000 ($5,000 per customer), i = Cost of Capital = .08, Growth = 0. From the second year onwards, normal sales of $20,000, 30% Profit Margin are expected, followed by a Retention Rate of 85% for future years.