Using Excel, calculate your lifetime value for an offering to which you have developed loyalty in the past 5 years. In your calculation, consider the average amount you purchase (AMP) annually and the likelihood of you being retained as a customer next year (assume this retention rate remains the same each succeeding year). Also, assume:

• Your acquisition cost is $100
• Your average annual customer cost (retention cost) is 60% of your revenue (assume your annual contribution of $500 increases by 5% every year)
• The discount rate is .05.
• revenue is 500

In addition to your calculation, be sure to identify the product/service you chose and provide a brief explanation of how you came up with your calculation. Next, identify and describe two recent factors (one internal and one external to the company) that might positively effect your CLV and then do the same thing for two recent factors that might have a negative impact. Recalculate your CLV considering the positive factors and then separately for the negative factors. Lastly, briefly summarize your CLV analysis with some suggestions for the company.