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In determining the Customer Lifetime Value, the company's sales revenue was $20,000. Variable and other...

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Accounting

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In determining the Customer Lifetime Value, the company's sales revenue was $20,000. Variable and other costs accounted for $16,000. With this pricing strategy, the company was able to retain 90% of its customers. The current prime bank interest rate is 2.5% and the company used a 5% test interest rate. What is the customer lifetime value? $6,667 $26,667 $16,667 $4000

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