Question: Break-even analysis and customer lifetime value For the information given, rank the customers in terms of customer lifetime value. Use a discount rate of
Break-even analysis and customer lifetime value For the information given, rank the customers in terms of customer lifetime value. Use a discount rate of 6 percent and treat the average sales figures as annuities. Expected Average Average Lifetime Annual Profit (years) Sales Margin Customer A 9 $38,000 13% Customer C 12 $25,000 15%
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