Question: please help 19 In this example, the following assumptions have been made The average customer cost is $7 (C) - The profit revenue stream from

please help 19
please help 19 In this example, the following assumptions have been made

In this example, the following assumptions have been made The average customer cost is $7 (C) - The profit revenue stream from the customer is $30 in each period (R) - The discount rate of 10% (r) (start to apply at year 2 ) Retention rate of 75% (p) (start to apply at year 2 ) It costs $20 to acquire a customer (A) The average referral $ is $3 What is the lifetime value of this customer at the end of year 2 and year 5? Year 2: $16, Year 5: $39 Year 2: $21, Year 5: $45 Year 2: $18, Year 5: $40 Year 2: $23, Year 5: $38 Year 2: $24, Year 5: $50

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