Q 2 :

Our study shows that Mary will have different transaction values in the next three years with Giant Tiger (See Table 3). The gross contribution is 0.20 and discount rate is 0.05. Suppose current year is 2008.

Table 3. Future Transaction

Gross contribution Margin		0.20
Discount rate		0.05
	2009	2010	2011
$ Amount	1000	1000	1000
GC	A

10 Suppose Giant Tiger has 1,000 customers, and each customer has $600 of LTV on average. The customer equity of Giant Tiger is

		$600
		$1,000
		$600,000
		$6,000,000
		$60,000