-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer A to have a customer lifetime value equal $300,000?
A)Around 27%
B)Around 36%
C)Around 40%
D)Around 30%
E)Do not have enough information to compute

Question

-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer A to have a customer lifetime value equal $300,000?
A)Around 27% 
B)Around 36% 
C)Around 40% 
D)Around 30% 
E)Do not have enough information to compute

Quizplus · Accepted Answer

The Answer of 
-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer A to have a customer lifetime value equal $300,000?
A)Around 27% 
B)Around 36% 
C)Around 40% 
D)Around 30% 
E)Do not have enough information to compute

-Using a Discount Rate of 11% and Treating the Average