Blooms, Etc. has a plant-of-the-season club. The club member receives a plant at the beginning...
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Accounting
Blooms, Etc. has a plant-of-the-season club. The club member receives a plant at the beginning of each new season, i.e., four times a year, at a discounted price. The annual membership fee is charged on a quarterly basis and Blooms net (revenues minus variable costs) is $31 per quarter. The annual retention rate is 48%, and the annual discount rate is 12%. Calculate the CLV of an existing club member. Assume end-of-period payments for simplicity.
Please show the work as Im trying to learn the concept
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