Question: How much is the Customer Lifetime Value? (Select best answer) Assumptions: Retention Rate= 75%, Average annual customer purchase $20,000, 30.2% 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, 30.2% Contribution Margin, Annual Fixed costs $100,000 ($5,000 por customer), i=Cost of Capital=.10, Growth=0, no new cash investments.
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