tests your ability to compute the Customer Lifetime Value metric and then apply it in a simple breakeven analysis.The data below show the results of a Starbucks segmentation study.Each column shows the values for a typical customer in each class (constant over the lifetime of the customer).The annual retention probability applies only after the first year.That is, no one defects until after a full year of patronizing Starbucks

a.Assume that Starbucks' gross margin is 40% and that its (one-time) customer acquisition cost is $100.Further assume that Starbucks uses a discount rate of 10%.What is the 5-year individual customer CLV for each class of customer?

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