Question: Marcus is a regular customer at Highwire (100% loyal). He goes there once a week and has 2 beers which are $5 each. Assume Highwire

Marcus is a regular customer at Highwire (100% loyal). He goes there once a week and has 2 beers which are $5 each. Assume Highwire gross margin is 75% and there are 4 weeks per month. Using month as the discount period and a monthly discount rate of 1%, what is Marcus's CLV to Highwire (use a time horizon of 3 months for the calculation)?

And what if Marcus is not a loyal customer? Assume a monthly retention of 95%. What is new CLV (again, use a time horizon of 3 months and a monthly discount rate of 1% for the calculation)?

And what is the probability that Marcus is still a customer after 12 months?

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