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Assume that Shannon’s decides to move forward with its loyalty / rewards program. Estimates for the cost per customer are $6.22 per month. Average customer margins, before subtracting off the cost of the loyalty / rewards program, are expected to increase to 33.9 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 (i.e. 12%)? Round your answer to the nearest penny.

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Financial Management, Finance

Category:- Financial Management
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