What is the customer lifetime value of a customer that that generates $5,000 (on average) of annual sales? Assume an 8% discount rate, a 15% profit margin, and a customer expected lifetime of 8 years.

a. Less than $2,000
b. Between $2,000 and $3,000
c. Between $3,000 and $4,000
d. More than $4,000


d. More than $4,000

Business

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What will be an ideal response?

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