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Question

For the information given, rank the customers in terms of customer lifetime value.

Customer 1: $3,450 17 % 8

years

Customer 2: $2,000 13 % 6 years

Customer 3: $1,400 32 % 10 years

Use a discount rate of 6 percent and treat the average sales figures as annuities.

What is the formula for this, and CLV for each?

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The three customers are ranked as follows according to... View the full answer

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