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As the operations manager of Ricardo Inc, manufacturer of gas grills in Central Ohio, you have to assess the customer lifetime values of different major customers. Your three major customers are three large home improvement stores that sell your products. You would like to calculate the expected lifetime profitability of each of these major customers to develop more effective customer relationships and marketing efforts.
The three major customers and their characteristics are given below:
Customer Name: Ave Sales/Yr Ave Profit Margin Expected Lifetime
Home Center 3,500,000 20% 5
Lions Depot 2,800,000 15% 15
Hardware Shack 4,000,000 12% 10
Using the discount rate of 8% and treating average sales figures as annuities, calculate the lifetime values of each customer.
***Submit your solution to this assignment in an EXCEL SPREADSHEET.***
ASSIGNED TEXT LINK
https://studylib.net/doc/25872175/joel-d.-wisner—principles-of-supply-chain-management–a…https://studylib.net/doc/25872175/joel-d.-wisner—principles-of-supply-chain-management–a…
CITATION
Wisner, J. D., Tan, K., & Leong, G. K. (2018). Principles of Supply Chain Management: A Balanced Approach (5th ed.). Cengage Limited. https://reader2.yuzu.com/books/9780357296509
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