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Find Out the Customer Lifetime Value Using the Following Information

Question 6

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 5%.
Average Annual Sales = $61,000 (treat the average sales as annuity)
Average Profit Margin = 9%
Expected Lifetime in Years = 9


A) $61,000
B) $5,490
C) $39,022
D) $18,286
E) Do not have enough information to compute

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