rd-party developer to launch their mobile 6. AP a national AP, a national apparel retailer, plans to work with a third-party develo app. The app will allow customers check their wish lis ustomers check their wish list and previous purchases on their phone while in the store. It also sends targeted promotion notifications to $90 million development fee and $20 million ment fee and $20 million marketing costs. However, AP believes that the effort will lower the customer churn rate from 20% to 16%. (1) Fill in the CLV table below. (5 points) (2) Calculate the ROI of the App. (2 points) notifications to customers. The app will cost Without the App Year 4 400 Year 5 400 Year 1 400 1,000,000 20% Year 2 400 800,000 20% Year 3 400 640,000 20% 256,000,000 10% 20% 20% Profits per customer No. customers Chur rate Expected profits Discount rate Discount years 10% 320,000,000 109% 400,000,000 10% 10% 2 363.636.364 264,462,810 363,636,364 628,099,174 192,336,589 820,435,763 Present value of expected profits Cumulative LTV Year With the App Year 4 400 400 400 16% Year 1 Year 2 Year 3 400 1,000,000 840,000 705,600 16% 400,000,000 336,000,000 282,240,000 10% 16% 16% 10% 10% 10% Profits per customer No, customers Chur rate Expected profits Discount rate iscount years esent value of expected profits ...Intiva I TV 363,636,364 277,685,950 363,636,364 641,322,314 212,051,089 853,373,403 rd-party developer to launch their mobile 6. AP a national AP, a national apparel retailer, plans to work with a third-party develo app. The app will allow customers check their wish lis ustomers check their wish list and previous purchases on their phone while in the store. It also sends targeted promotion notifications to $90 million development fee and $20 million ment fee and $20 million marketing costs. However, AP believes that the effort will lower the customer churn rate from 20% to 16%. (1) Fill in the CLV table below. (5 points) (2) Calculate the ROI of the App. (2 points) notifications to customers. The app will cost Without the App Year 4 400 Year 5 400 Year 1 400 1,000,000 20% Year 2 400 800,000 20% Year 3 400 640,000 20% 256,000,000 10% 20% 20% Profits per customer No. customers Chur rate Expected profits Discount rate Discount years 10% 320,000,000 109% 400,000,000 10% 10% 2 363.636.364 264,462,810 363,636,364 628,099,174 192,336,589 820,435,763 Present value of expected profits Cumulative LTV Year With the App Year 4 400 400 400 16% Year 1 Year 2 Year 3 400 1,000,000 840,000 705,600 16% 400,000,000 336,000,000 282,240,000 10% 16% 16% 10% 10% 10% Profits per customer No, customers Chur rate Expected profits Discount rate iscount years esent value of expected profits ...Intiva I TV 363,636,364 277,685,950 363,636,364 641,322,314 212,051,089 853,373,403