Which of the Following Is Included When Calculating Customer Lifetime

question 4

Multiple Choice

Which of the following is included when calculating Customer Lifetime Value?

• A) a discount rate
• B) future product purchases
• C) the average contribution margin from purchases
• D) none of the above
• E) all of the above

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Definitions:

Gross Investment

The total amount of capital invested in a firm, including replacements for depreciation and new investments for expansion.

Net Investment

The difference between total investment in an economy and the depreciation of capital.

Depreciation

The process by which capital assets lose value over time due to use, wear and tear, or obsolescence.

Capital Stock

The total amount of physical goods or financial assets that a company possesses which are used in the production of goods and services.