Proposed acquisition spending economically attractive

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A service company plans to spend $50,000 on an advertising campaign reaching 100,000 readers. The service company expects the advertisement to convince 1.5% of the readers to take advantage of an introductory promotion that earns the company $10 margin. The CLV of the acquired customers is $100. Is the proposed acquisition spending economically attractive?

Reference no: EM131707666

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Proposed acquisition spending economically attractive : The CLV of the acquired customers is $100. Is the proposed acquisition spending economically attractive?

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