(Customer Lifetime Value) - Please provide calculation with explanation

 

ABC Prime Company Charges INR.250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR.600 per Year per customer as retention cost. ABC Prime Company works at discount rate of 5% and is able to retain 90% customers on yearly basis

 

1. What is CLV (Customer Lifetime Value) of ABC Prime Company Customer?
2. If ABC Prime Company spends INR 1500 in acquiring one customer, what is net CLV (Customer Lifetime Value) of ABC Prime Company Customer?
3. If ABC Prime Company increases its monthly subscription rate to INR 300, customer retention rate drops to 80%. ls it a profitable move? Please provide calculation with explanation.
4. If ABC Prime Company doubles its spend on retention cost, its Customer retention rate improves to 92%. Is it a profitable move? Please provide calculation with explanation.