Rank the customers in terms of their lifetime value: Use a discount rate of 6% and treat the average annual sales figures as annuities, should any of these customers be fired?
Customer, Avg Annual Sales, Avg profit margin, expected lifetime
Customer A, $2500, 17%, 8 years
Customer B, $4000, 12%, 6 years
Customer C, $1200, 30%, 12 years