Estimate value of a customer and net of acquisition costs

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Reference no: EM131380624

It costs Ameritrade $203 to acquire a customer.

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.

Reference no: EM131380624

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