Frederick Consulting had just landed a white whale of a customer, Wilfrid Laurier University, after spending...

 

Transcribed Image Text:

Frederick Consulting had just landed a white whale of a customer, Wilfrid Laurier University, after spending $52,000 in initial acquisition costs! Laurier is expected to generate $39,000 a year in margin, and Frederick Consulting expects this relationship to last for a very long time (decades). Additional costs to serve and retain Laurier are estimated to be $20,000 annually. The retention rate per period is 92%. The cost of capital for Frederick Consulting is 15%. What is the customer lifetime value of Wilfrid Laurier University for Frederick Consulting? Frederick Consulting had just landed a white whale of a customer, Wilfrid Laurier University, after spending $52,000 in initial acquisition costs! Laurier is expected to generate $39,000 a year in margin, and Frederick Consulting expects this relationship to last for a very long time (decades). Additional costs to serve and retain Laurier are estimated to be $20,000 annually. The retention rate per period is 92%. The cost of capital for Frederick Consulting is 15%. What is the customer lifetime value of Wilfrid Laurier University for Frederick Consulting?

Answer rating: 100% (QA)

Spending 52000luitial host Margin 39000 additind list20000 Jannuall... View the full answer