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Find Out the Customer Lifetime Value Using the Following Information

Question 1

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 6%.
Average Annual Sales = $7,500 (treat the average sales as annuity)
Average Profit Margin = 8%
Expected Lifetime in Years = 7


A) $2,343
B) $600
C) $7,500
D) $3,349
E) Do not have enough information to compute

Correct Answer:

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