Year Year 1 Year 2 Year 3 Year 4

Revenue 22 25 26.5 29.3

Cost 11 13.2 15.2 18.35 21.5

Profit -11 8.8 9.8 8.15 7.8

Customer Retaintion Rate 100% 89% 85% 72%

Profit Based on Retained Customer 8.80 8.72 6.93 5.62

PV 11 8.30 7.76 5.82 4.45

Discounted rate = 6%

Initially we took the revenue and cost of the company and just find the profit. Then we find the average profit according to our
Based on there thngs we find the actual profit after reatined our customer and then we discounted these cashflows and find th
 Year 5

34
24

10

61%

6.10

4.56

the average profit according to our customer retaintion rate.

counted these cashflows and find the PV .