What is the customer lifetime value of a customer that that generates $1,000 (on average) of annual sales? Assume a 7% discount rate, a 15% profit margin, and a customer expected lifetime of 10 years.
a. $140
b. $1,054
c. $21
d. Cannot be determined from the information given
b. $1,054
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Which of the following statements is true of a target market?
A. Uncontrollable elements continually evolve and create changes in a target market. B. Managers can control the external environment that molds and reshapes a target market. C. Environmental scanning is performed by firms in order to prevent changes in a target market. D. Unlike uncontrollable variables, controllable variables do not affect a target market.
Cash flows from operating activities are primarily related to the revenues and expenses reported on the income statement
Indicate whether the statement is true or false
From the Adjustments columns of the work sheet, only the debit amount for the Income Summary account is extended to the Adjusted Trial Balance columns
Indicate whether the statement is true or false
Breakeven cash inflow refers to ________
A) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV greater than zero B) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV less than zero C) the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR less than zero cost of capital D) the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR equals zero