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Business, 03.04.2020 23:42 Niktorres560Luckynik

A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer. Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years. Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years. Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate.

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A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer....

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