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CLV Example 2,000 new customers were attracted at a cost of $20...

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Accounting

CLV Example
2,000 new customers were attracted at a cost of
$20 each and then tracked over a 3-year period (T
=3). The average annual purchase was $1000.00,
with a gross margin of 50% and annual per capita
marketing expense of $100.00. All-Star uses a
discount rate of 10%, and the retention rate was
40%.
What is All-Star's 3-year CLV for the Birthday Club?
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