Shannons currently boasts a customer base of 1 750, Ask an Expert

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Shannon's currently boasts a customer base of 1, 750 customers that frequent the brewhouse on average twice per month and spend $30 per visit. Shannon 's current variable cost of goods sold is 50% of sales. The customer base is growing at the rate of 3% month with a customer retention rate of 0.73%, based on data collected from its website and an analysis of credit card receipts. It's current cost of capital for borrowing and investing is about 12% per year. What is Shannon's approximate CLV for its average customer? Compute your answer to the nearest penny.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92296147

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