Consider the following data: (Click the icon to view the data.) Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Begin by determining the general formula for calculating customer lifetime value (CLV). (Abbreviation not already defined: Cost of capital = i) CLV = tn (M-c) x (retention rate) t-1 (1 + i)t - Initial acquisition cost t=1 Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted net cash flows 1 2 3 4 5 6 Total Data table Initial acquisition cost n = number of years retained r = retention rate for each of the n years retained Cost of capital M = margin from customer in year t M M M3 M4 M5 M6 C C2 Customer 421 $800 6 0.9 0.1 $270 320 345 370 395 430 90 80 - X C3 CA C5 C6 80 80 70 70 Consider the following data: (Click the icon to view the data.) Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Begin by determining the general formula for calculating customer lifetime value (CLV). (Abbreviation not already defined: Cost of capital = i) CLV = tn (M-c) x (retention rate) t-1 (1 + i)t - Initial acquisition cost t=1 Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted net cash flows 1 2 3 4 5 6 Total Data table Initial acquisition cost n = number of years retained r = retention rate for each of the n years retained Cost of capital M = margin from customer in year t M M M3 M4 M5 M6 C C2 Customer 421 $800 6 0.9 0.1 $270 320 345 370 395 430 90 80 - X C3 CA C5 C6 80 80 70 70 Consider the following data: (Click the icon to view the data.) Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Begin by determining the general formula for calculating customer lifetime value (CLV). (Abbreviation not already defined: Cost of capital = i) CLV = tn (M-c) x (retention rate) t-1 (1 + i)t - Initial acquisition cost t=1 Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted Requirement Compute the customer lifetime value for Customer 421 based on the data above for the first six years of the customer relationship. Costs (c) were incurred to promote customer retention to a rate of 0.9 in years 1 through 6. Next calculate the discounted net cash flows for each year and in total. (Round all amounts in your calculation to four decimal places, X.XXXX.) Discounted net cash flows 1 2 3 4 5 6 Total Data table Initial acquisition cost n = number of years retained r = retention rate for each of the n years retained Cost of capital M = margin from customer in year t M M M3 M4 M5 M6 C C2 Customer 421 $800 6 0.9 0.1 $270 320 345 370 395 430 90 80 - X C3 CA C5 C6 80 80 70 70