Question: Walker & Daniels is an accounting firm which does a sizeable business in individual tax preparation and filing. The firm charges $250 for its tax

Walker & Daniels is an accounting firm which does a sizeable business in individual tax preparation and filing. The firm charges $250 for its tax services and maintains a 60% contribution margin. Historical data suggest that 80% of clients return the following year for tax preparation services. Assuming a 5-year planning horizon, what is the lifetime value of a new customer?

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