Verizon spent $350 to acquire Victoria and expected a $500 annual contribution margin from her so long as she was a customer. The churn rate of customers similar to Victoria is 10% per year. The firm’s discount rate is 20% per year. Calculate the lifetime value of Victoria. answer choices $1,000 $1,150 $1,650 $1,950 $4,550
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Verizon spent $350 to acquire Victoria and expected a $500 annual contribution margin from her so long as she was a customer. The churn rate of customers similar to Victoria is 10% per year. The firm’s discount rate is 20% per year. Calculate the lifetime value of Victoria.
answer choices
$1,000
$1,150
$1,650
$1,950
$4,550
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