Question: Could you please help me with the below questions, how it is calculated? QUESTION 1 The CLV for 5 years is calculated as shown in
Could you please help me with the below questions, how it is calculated?
QUESTION 1
The CLV for 5 years is calculated as shown in the table below. Fill in the blanks to complete the table.
| YEAR | 0 | 1 | 2 | 3 | 4 | 5 |
| Average Acquisition Cost | $ 50.00 | |||||
| Average Customer Revenue | $ 50.00 | $ 100.00 | $ 200.00 | $ 300.00 | $ 300.00 | $ 300.00 |
| Average Customer Costs | $ 130.00 | $ 190.00 | ||||
| Average Customer Profit | $ (30.00) | $ 30.00 | $ 110.00 | $ 110.00 | ||
| Customer Retention Rate | 100% | 75% | 75% | 75% | 75% | 75% |
| Cumulative Retention Rate | 100% | |||||
| (Likely) Customer Profit | ||||||
| Discount Rate | 1 | 1.1 | 1.21 | 1.33 | 1.46 | 1.61 |
| CLV per Year | ||||||
| Lifetime Value (sum of NPV) |
QUESTION 2
The CLV for 5 years is calculated as shown in the table below. Fill in the blanks to complete the table.
| YEAR | 0 | 1 | 2 | 3 | 4 | 5 |
| Average Acquisition Cost | $ 100.00 | |||||
| Average Customer Revenue | $ 125.00 | $ 150.00 | $ 100.00 | $ 150.00 | $ 100.00 | $ 150.00 |
| Average Customer Costs | $ 250.00 | $ 50.00 | $ 50.00 | $ 75.00 | $ 75.00 | $ 100.00 |
| Average Customer Profit | ||||||
| Customer Retention Rate | 100% | 85% | 80% | 80% | 75% | 95% |
| Cumulative Retention Rate | 100% | |||||
| (Likely) Customer Profit | ||||||
| Discount Rate | 1 | 1.05 | 1.10 | 1.16 | 1.22 | 1.28 |
| CLV per Year | ||||||
| Lifetime Value (sum of NPV) |
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