Suppose that your local coffee shop estimates earning the following revenue from customers for the next five years: 194, 301, 392, 501, 580. The business will face the following costs over the same five years to service the customers: 51, 39, 30, 19, 12. There is a one-time cost of $ 1,050 to acquire the customers. Assume a 100% retention rate of the customers and no discounting of future profit. What is the customer lifetime value over the five-year period? Round answer to the nearest whole number.
Suppose that your local coffee shop estimates earning the following revenue from customers for the next five years: 194, 301, 392, 501, 580. The business will face the following costs over the same five years to service the customers: 51, 39, 30, 19, 12. There is a one-time cost of $ 1,050 to acquire the customers. Assume a 100% retention rate of the customers and no discounting of future profit. What is the customer lifetime value over the five-year period? Round answer to the nearest whole number.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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Suppose that your local coffee shop estimates earning the following revenue from customers for the next five years: 194, 301, 392, 501, 580.
The business will face the following costs over the same five years to service the customers: 51, 39, 30, 19, 12.
There is a one-time cost of $ 1,050 to acquire the customers. Assume a 100% retention rate of the customers and no discounting of future profit.
What is the customer lifetime value over the five-year period? Round answer to the nearest whole number.
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