Determine the cltv for the client in the four ways

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An Insurance Company wants to calculate the CLTV of a client who is expected to generate new sales of $375,000 per year for an expected 12 years. If the margin (SP-VC) on this sales is expected to be 22%.

Problem 1: Determine the CLTV for the client in the ways using the following relevant additional information:

  1. The Finance Division calculated that the client would bring in net returns of $80,000 at the end of every year for 12 years and agreed to use a cost of money of 10% compounded annually. Find the CLTV using this method.

Reference no: EM132970597

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