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Find Out the Customer Lifetime Value Using the Following Information

Question 35

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 14%.
Average Annual Sales = $55,000 (treat the average sales as annuity)
Average Profit Margin = 7%
Expected Lifetime in Years = 10


A) $3,850
B) $55,000
C) $20,082
D) $54,082
E) Do not have enough information to compute

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