Question: Q5: Customer Lifetime Value (CLV) AC = $50 per person, R = $40 per person and C = $10 per person Churn rate = 20%

Q5: Customer Lifetime Value (CLV) AC = $50 per person, R = $40 per person and C = $10 per person Churn rate = 20% or 0.2 and Discount Rate (r) = 10% or 0.1 a. What will be CLV for infinite time horizon? (40-10)/(1-20%+10%)- 50= -16.66 b. What would be ROI with accounting for Acquisition cost? ??

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