Customer Lifetime Value (data in the worksheet CLV) 1. Bob, a micro-entrepreneur, operates an online store that sells electronics. He provides you with the customer data (in the worksheet "CLV") and asks you whether it is profitable for him to get the following new customer: Name: Winnie Annual Income: 80,000 Annual Spending on Electronics: $1,600 Number of purchases per year: 1 Customer lasts for 2 years Margin per purchase in Year 1: $148 Survival rate in Year 1: 100% He tells you that he is very patient and does not discount future profit stream and the cost of acquiring this customer (i.e., Winnie) is $200. What is your answer to Bob' question? (Hint: Predict the margin per purchase / survival rate in Year 2 for Winnie. Then compute the CLV for Winnie. Is the benefit of acquiring Winnie higher than the associated acquisition cost?)