Question: How much is the Customer Lifetime Value? (Select best answer) Assumptions: Retention Rate= 75%, Average annual customer purchase $20,000, 31.7% Contribution Margin, Annual Fixed costs

How much is the Customer Lifetime Value? (Select best answer)

Assumptions: Retention Rate= 75%, Average annual customer purchase $20,000, 31.7% Contribution Margin, Annual Fixed costs $100,000 ($5,000 por customer), i=Cost of Capital=.10, Growth=0, no new cash investments.

Seleccione una:

a. 0 or less (Negative value)

b. 100

c. 500

d. 750

e. 1000

f. 2000

g. 3000

h. 4000

i. 5000

j. 6000

k. 7000

l. 8000

m. 9000

n. 9500

o. 10000 or over

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!