Question 5: Best Buy wants to know the expected customer lif…

Questions

Questiоn 5: Best Buy wаnts tо knоw the expected customer lifetime customer vаlue of а customer (Bob). Bob is expected to have a margin contribution of $250 per year for the next 3 years. Assume a discount rate of 10%, a retention rate of 100%, and no acquisition cost for Bob. If Bob generates the this margin for the next 3 consecutive years, what is the lifetime customer value for Bob under those assumptions?

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