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Find Out the Customer Lifetime Value Using the Following Information

Question 37

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 8%.
Average Annual Sales = $4,000 (treat the average sales as annuity)
Average Profit Margin = 12%
Expected Lifetime in Years = 11


A) $4,000
B) $480
C) $3,427
D) $1,900
E) Do not have enough information to compute

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