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Calculate the CLV

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Question - A service provider tracks customers who use its service facility. The acquisition cost of provisioning the service is Rs 2000 and revenue coming in is Rs 5000 in the 1st year, Rs5500 in the 2nd and 3rd year, and 6000 in the 4th year. Assume the discount rate is 10%. The probability of retention of the customers during the 4 years is 0.9, 0.8, 0.6, and 0.5. If the cost of provisioning the service is Rs 1000, Rs 1000, Rs 1500, and Rs2000 during the 4 years, calculate the CLV?

Reference no: EM133021769

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