Additional costs to serve and retain the customer in year t is represented in the customer lifetime value equation as ct.

Question

Quizplus · Accepted Answer

Cost of capital is represented in the customer lifetime value equation as Ct.
The additional costs are shown as (lower case)c in the equation. So this statement is True if you change the C to c. The explanation is incorrect because the cost of capital is shown as i in the equation.

Additional Costs to Serve and Retain the Customer in Year