Question: Please answer with work shown and the LTV formula. Aslo this question has two parts (a) and (b). Dont forget to answer those too! 1.

Please answer with work shown and the LTV formula. Aslo this question has two parts (a) and (b). Dont forget to answer those too!

1. Customer A spends $1,300 this year at your firm. What is the LTV in 5 years out? Assume 2% interest rates and a 100% probability of retention. a. What is the answer with a non-constant cash flow? b. What s the answer with constant cash flow

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