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What is her lifetime customer value

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Question - An entrepreneur is selling a natural shampoo with conditioner for $22 per bottle. Customers buy an average of 3 bottles per year. The gross margin on this product is 49%. It appears that the entrepreneur is able to retain 81% of her customers from one year to the next. Assuming a discount rate of 9%, what is her lifetime customer value?

Reference no: EM133088608

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