Customer Lifetime Value Includes the Net Present Value of the Stream

question 119

Multiple Choice

Customer lifetime value includes the net present value of the stream of profits over a customer's lifetime and _____.

• A) the costs associated with satisfying that customer
• B) the costs associated with keeping that customer for more than 10 years
• C) the retention rate for all customers
• D) opportunity cost saved from having loyal customers
• E) the worth attributed to the equity a good customer can bring

---

Definitions:

Liquidity Crisis

A situation where an entity lacks the liquidity necessary to meet its short-term obligations, potentially leading to insolvency.

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Inventory Loans

are secured short-term loans or lines of credit given against the inventory of a business, used to purchase additional inventory or manage cash flow.