or this exercise you will through a complete calculation of customer lifetime which is provided over a ten$-$year period with the following assumptions: that the initial acquisition cost oer customer is $$200,$ that the average custoer revenue starts at $$500$ in year one and increases by $$60$ per year $-$ rising to $$950$ by year $10$ customer costs have set at $50\%$ of revenuue $-$ therefore, it costs the firm in $($in year one$)$ $$250$ in product and service costs to generate $$500$ revenue, only customer revenues and costs are considered up to year $10,$ with any subsequent revenues being disregarded in calculation, a retention rate of $80\%$ has been used, and a discount rate of $10\%$ has been applied.