Question: Please show Excel processing for Problem : From the information given below, rank the customers in terms of their lifetime value. Avg. Annual Sales Avg.
Please show Excel processing for Problem :
From the information given below, rank the customers in terms of their lifetime value.
| Avg. Annual Sales | Avg. Profit Margin | Expected Lifetime | ||
| Customer A: | $2,300 | 16% | 9 years | |
| Customer B: | $3,800 | 11% | 7 years | |
| Customer C: | $1,500 | 25% | 13 years | |
Use a discount rate of 7 percent and treat the average annual sales figures as annuities. (Hint: Rank NPVs from best to worst.) Do not round intermediate calculations. Round your answers to the nearest dollar.
| NPV | ||
| Customer A | $ | |
| Customer B | $ | |
| Customer C | $ |
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