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Find Out the Customer Lifetime Value Using the Following Information

Question 26

Multiple Choice

Find out the customer lifetime value using the following information and a discount rate of 16%.
Average Annual Sales = $39,000 (treat the average sales as annuity)
Average Profit Margin = 11%
Expected Lifetime in Years = 8


A) $4,290
B) $32,112
C) $18,634
D) $39,000
E) Do not have enough information to compute

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