question archive Using a discount rate of 8 percent, and treating the average sales figures as annuities, rank the customers in terms of their lifetime value
Using a discount rate of 8 percent, and treating the average sales figures as annuities, rank the customers in terms of their lifetime value
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Using a discount rate of 8 percent, and treating the average sales figures as annuities, rank the customers in terms of their lifetime value. You need to show the detailed procedure when calculating NPV.
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Avg. Annual Sales Avg. Profit Margin Expected Lifetime
Customer A: $2,500 14 % 9 Years
Customer B: $4,000 1 3 % 7 Years
Customer C: $2,100 16 % 13 Years
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