Question: Amazon's CLV - Pt 9 Amazon's CFO suggests using a 10% cost of capital in this scenario. Your CFO requests your conclusion as to whether



Amazon's CLV - Pt 9 Amazon's CFO suggests using a 10% cost of capital in this scenario. Your CFO requests your conclusion as to whether this deal is worthwhile and should be approved. Be sure to support your answer with the relevant metrics and/or non-quantitative factors worthy of consideration. QUESTION 16 Amazon's CLV - Pt 8 Amazon's CFO suggests using a 10% cost of capital in this scenario. What is the CLV (in total dollars for all Subprime members in total, on a discounted basis) QUESTION 15 Amazon's CLV - Pt 7 Amazon expects that each of the new Subprime members will remain loyal, repeat customers for at least the 5-year forecast horizon. They may remain members beyond the initial 5 years, if we impress members with our quality of service. However, to remain conservative, we'll assume all of these subscribers abandon Amazon completely in exchange for Alibaba after 5 years' time. Amazon's typical order is $100, at an average gross margin of 30%. Amazon's CFO expects that sales sourced via Subprime members will have a typical order size of $125 and an average gross margin of 20%. Amazon expects that each new Subprime member will place consistent repeat orders. On average, each subprime member will place 6 orders per year. What is the CLV (in total dollars for all Subprime members in total, on an undiscounted basis)
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