What is the resulting CLV

Reference no: EM131795828

Question: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $6.34 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to increase to 34.34 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.

Reference no: EM131795828

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