Problem: Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for 25,591 and has a margin of 8. Based on historical averages, 81 of people buying a new vehicle at Eastern will return for service 7 times over the next 5 years. Though it varies considerably, Eastern generates approximately 95 in margin on each service visit after accounting for parts and direct labor costs. What is the 5 year value of the service component of a customer who returns to Eastern Motors for servicing their vehicle?