Rank the customers in terms of their lifetime value

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Reference no: EM13960800

Rank the customers in terms of their lifetime value: Use a discount rate of 6% and treat the average annual sales figures as annuities, should any of these customers be fired?

Customer, Avg Annual Sales, Avg profit margin, expected lifetime

Customer A, $2500, 17%, 8 years

Customer B, $4000, 12%, 6 years

Customer C, $1200, 30%, 12 years

Reference no: EM13960800

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