How Can a Customer Database Be Used to Identify a Company's

question 52

Essay

How can a customer database be used to identify a company's best customers?

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Definitions:

Compound Interest

Interest that is computed not only on the initial amount of the loan or deposit but also on any interest that has been added to this amount from earlier periods.

Cash Payback Period

The time it takes for a business to recover its investment in a project, through cash inflows.

Desired Rate

Often refers to the target internal rate of return or the specific return percentage that an investor aims for in financial investments.

Present Value Index

A financial calculation that helps to evaluate the profitability of an investment or project by considering the present value of expected cash flows.