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-Using a Discount Rate of 11% and Treating the Average

Question 45

Multiple Choice

-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer A to have a customer lifetime value equal $300,000? A) Around 27% B) Around 36% C) Around 40% D) Around 30% E) Do not have enough information to compute
-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer A to have a customer lifetime value equal $300,000?


A) Around 27%
B) Around 36%
C) Around 40%
D) Around 30%
E) Do not have enough information to compute

Correct Answer:

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