Question: please help In this example, the following assumptions have been made. The gross profit reveoue from the customer starts at $400 in year one and
please help
In this example, the following assumptions have been made. The gross profit reveoue from the customer starts at $400 in year one and increases by $50 per year. Customer costs have been set at 50% of revenue-therefore, it costs the firm (in year one) $200 in piroduct and service costs to generate $400 in revenue. The discount rate of 15 pereent (start to apply in year 2 ) What is the lifetime value of this customet at the end of year 2 and year 5 ? Year 2; 5350, Year 5:5850 Year 2: $410, Year 5:$990 Year 2: \$396. Year 5; 5937 Ycar 2, 5375. Year 5: \$9000 Year 2: \$320, Yoar 5: \$925
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