In case of _____,NPV can be seen as a function of retention rates,which remain at the same level in each buying period.
A) New supplier accounts
B) Always-a-share accounts
C) Lost-for-good accounts
D) Prospective customer accounts
E) Never-a-share supplier accounts

Question

Quizplus · Accepted Answer

Always-a-share accounts refer to customers who always purchase from the same company and have a high retention rate, meaning they continually buy from the company. In this case, NPV can be seen as a function of retention rates that remain at the same level in each buying period. This is because these customers are predicted to remain loyal and continue buying from the company, resulting in predictable future cash flows.

In Case of _____,NPV Can Be Seen as a Function