Question 23: A customer is expected to have the following fu…
Question 23: A customer is expected to have the following future transactions: $1,000 contribution margin, 1 year from now$2,500 contribution margin, 5 years from now$3,000 contribution margin, 10 years from now The firm assumes: A discount rate of 10% A retention rate of 90% It will cost $900 now to acquire this customer (i.e. acquisition cost) Given this information, calculate the firm’s expected Lifetime Customer Value (LCV) for this customer.
Read DetailsQuestion 22: A customer completed the following transactions…
Question 22: A customer completed the following transactions with a company in the past: $700 contribution margin transaction – 3 years ago$500 contribution margin transaction – 2 years ago$300 contribution margin transaction – 1 year ago$100 contribution margin transaction – this year (0 years ago) The firm assumes a discount rate of 10%. Given this information, calculate a Past Customer Value (PCV) for this customer. Round your answer to the nearest penny.
Read DetailsThe solutions in the two arms of this U-tube are separated b…
The solutions in the two arms of this U-tube are separated by a membrane that is permeable to water but not to sucrose. Side A is half-filled with a solution of 1 M sucrose. Side B is half-filled with 2 M sucrose. Initially, the liquid levels on both sides are equal. Which of the following will be true when the system illustrated above reaches equilibrium?
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