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Find Out the Customer Lifetime Value Using the Following Information

Question 30

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 7%.
Average Annual Sales = $23,000 (treat the average sales as annuity)
Average Profit Margin = 18%
Expected Lifetime in Years = 15


A) $4,140
B) $37,707
C) $23,000
D) $8,197
E) Do not have enough information to compute

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