1. Sunshine Juices estimates customer lifetime value for 1 "Urban Surge" customer at $375.15. This $375.15 is equal to
A. Total contribution margin, net of costs, generated by the customer over the expected lifetime of the relationship, discounted to present value.
B. Expected total value of revenue that the customer will generate for the firm.
C. The number of units of product that the company can expect the customer to purchase.
D. The value of the customer to the firm in one year, multiplied by the expected length of the relationship.
2. Your cousin offers you an investment opportunity where you invest $100,000 today and receive $2,500 per month for the next 100 months. What rate of return will you potentially earn?
26.67%
2%
2.22%
12.6%