Question: CM = 26% (Contribution Margin) AOR = 1.8 (Average Order Rate) RPO = $57.30 (Revenue per Order) 1. A private equity firm wants to value

CM = 26% (Contribution Margin) AOR = 1.8 (Average Order Rate) RPO

CM = 26% (Contribution Margin) AOR = 1.8 (Average Order Rate) RPO = $57.30 (Revenue per Order)

1. A private equity firm wants to value Blue Apron customer cohorts but use discount rates higher than the weighted average cost of capital (WACC) of 20% annually and 1.53% monthly to account for higher risk. Using a WACC of 25% and 30% and other numbers presented in the case, what is Blue Aprons new, high-risk CLV based on the one- and two-segment models?

Retention Curve Probabilities

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