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Q1: Shannon's Brewery currently boasts a customer base of 1,750 customers that frequent the brewbouse...

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Q1: Shannon's Brewery currently boasts a customer base of 1,750 customers that frequent the brewbouse on average twice per month and spend $33 per vilit. Shannoris current variable cost of goods sold is 500 of sales. The customer retention rate per month is 0.84 , based on data collected from its websife and an analysis of credit card receipts, lts current cost of capital for borrowing and investing is about 12% per year or 1% per month. What is 5 hannon's approximate CLV for its average customer? Compute your answer to the nearest penny. Question 2 Q2: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $2.7 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to be $36 per customer per month with a boost in retention to 82% per month. What is the resulting CLV if the annual interest rate for discounting cash flows remains the same as in Q1? Compute your answer to the nearest dollar

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