What annual retention rate doubles the value of a customer

Assignment Help Business Management

Reference no: EM131380621

1. Assume the annual retention rate for a cell phone subscriber is 70 percent and the customer generates $300 per year in profit. Assuming an annual discount rate of 8 percent, compute the value of a customer

2. Each year Capital Two retains 75 percent of its customers, and the annual discount rate is 5 percent. What annual retention rate doubles the value of a customer?

Reference no: EM131380621

Questions Cloud

Using aggregate production functions-labor-market analysis : Two countries, A and B, have identical levels of real GDP per capita. In Country A an increase in the capital stock increases the potential output by 10%. Country B also experiences a 10% increase in its potential output, but this increase is the res..

Estimate value of a customer and net of acquisition costs : Ameritrade earned $200 per year from a customer and had an annual retention rate of 95 percent. Assuming cash flows are discounted at 12 percent, estimate the value of a customer and the net of acquisition costs.

Market will transition to long run equilibrium by : If the price level rises and the money wage rate remains? constant, the quantity of real GDP supplied? ______ and there is a movement up along the? ______ aggregate supply curve. If there is an inflationary? gap, the market will transition to long ru..

Apply the steps of the nursing process : Within the Discussion Board area, write 250 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. You are required to use 1 scholarly resource,..

What annual retention rate doubles the value of a customer : Each year Capital Two retains 75 percent of its customers, and the annual discount rate is 5 percent. What annual retention rate doubles the value of a customer?

Express confirming and disconfirming messages : Express imagination and creativity. Express confirming and disconfirming messages. Describe one of the following functions of nonverbal communication from Bevan and Sole (Section 4.2).

Weakened real ability to perform at work : Barry, the head of a finance organization, employed Abby due to her physical appearance and made sure she was assigned only simple tasks. However, this weakened Abby's real ability to perform at work. This exemplifies _____ sexism.

What are the hoped for results : In the News: Based on your reading, think of ways in which the Government is actively involved with the purpose of changing the economy. Why does the Government use these tools of fiscal policy? What are the hoped for results? Do you agree the Gov..

As you examine the lists of top issues-do any surprise you : As you examine the lists of top issues, do any surprise you? Why or why not?For the specific concerns listed by respondents, further down the page, of the top three overall issues think about how both leadership and management have a role to play.

User Account

All Pages