The percentage of customers in group that were obtained at the same time who are still customers is known as the:

A) survival rate.
B) acquisition rate.
C) lifetime duration.
D) win-back rate.


A

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Answer the following statements true (T) or false (F)

To be useful, inductive research must be kept value-free.

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The basic principles of contract law apply to insurance policies

a. True b. False Indicate whether the statement is true or false

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Because short-term interest rates are much more volatile than long-term rates, an investor would, in the real world, be subject to much more interest rate price risk if he or she purchased a 30-day bond than if he or she bought a 30-year bond.

Answer the following statement true (T) or false (F)

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Droids-R-Us Inc (DRU), is considering the installation of a new production line to make service mechanoids. The cost of the new manufacturing equipment is $2.2 million. The machines are classified as 7-year properties

(MACRS rates are provided in the table, below.) The machines will be purchased at the beginning of 2014. (DRU uses a mid-year placed-in-service convention.) DRU's engineers estimate that the new assembly line could be ready for operations in early 2014. Annual EBITDA is forecasted to be $1.3M for 2014 and all subsequent years of the project. DRU's marginal tax rate is 35%. What is the value of the depreciation tax shield in 2015? (Do NOT assume that the equipment is salvaged in 2015.) Round your answers to the nearest dollar. Year 5-Year 7-Year 10-Year 1 20.00% 14.29% 10.00% 2 32.00% 24.49% 18.00% 3 19.20% 17.49% 14.40% 4 11.52% 12.49% 11.52% 5 11.52% 8.93% 9.22% A) $110,033 B) $188,573 C) $134,673 D) $314,380 E) $538,780

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