Customer \\_|alue Calculator , Sheen Acquisition Second Third Year Year Year Customers 100,000 60,000 42,000 Retention Rate 60% 70% 30% Orders per Year 1.3 2. 5 3 Avg Order Size $90 $95 $100 Total Revenue $16,200,000 $14,250,000 $12,600,000 Costs 70% 65% 65% Cost of Sales $11,340,000 $9,262,500 $3,190,000 AcquisitionJ'Mkt. Cost $55 $20 $20 Marketing Costs $5,500,000 $1,200,000 $340,000 Total Costs $16,340,000 $10,462,500 $9,030,000 Gross Prot ($640,000) $3,737,500 $3,570,000 Discount Rate 1 1.16 1.35 Net Present Value ($640,000) $3,265,036 $2,644,444 Cumulative NPV Prot ($640,000) $2,625,036 $5,269,531 Customer LTV ($6.40) $26.25 $52.70