What is the customer lifetime value for edrone

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Reference no: EM131545424

Drone concepts is considering the addition of a fifth model to its lines of drones. This model would be sold to retailers for $700. The variable cost of this unit is $525. The demand for the new model D5 is estimated to be 1700 units per year.

eDrone is an Internet service provider that $30 per month for its service. The company's variable costs are $0.65 per customer per month. The company's monthly customer retention rate is 70 percent. eDrone has a monthly discount rate of 3 percent.

A) What is the customer lifetime value for eDrone?

Reference no: EM131545424

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