A tree provider to plant nurseries is trying to use customer lifetime value to determine the value

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A tree provider to plant nurseries is trying to use customer lifetime value to determine the value of its customers. Two customers are shown below. Use customer lifetime value to determine the importance of each customer. Use an 8 percent discount rate. What do you recommend?

                                    Avg. Annual Sales      Avg. Profit Margin     Expected Lifetime

            Customer A:            $21,500                    20 %                        10 years

            Customer B:            $14,000                    10 %                        6 years

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Related Book For  book-img-for-question

Principles of Supply Chain Management A Balanced Approach

ISBN: 978-1337406499

5th edition

Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong

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