Study the data given and calculate the LTV for organization ABC Ltd.

Year 1 Year 2 Year 3

Referral Rate
a 8% 8.50% 9.50%
Referred Customer
b
Retention Rate
c 65% 75% 85%
Retained Customer
d
Total Customer
e 35,000
Revenue per Customer
g $. 218 $.342 $.394
Total Revenue
8048

Direct Costs / customer

I $. 250
Mass Marketing Cost / customer $.
j 300
Marketing Costs / customer $. 45
k
Total Costs
l
Profit
Discount rate
Net present value
Cumulative NPV
Life time value

Calculate the discount rate

Market rate of interest: 6 %

Risk factor is 1.6