Business
Business, 10.03.2020 18:34, keaton3410

AOL bought customers from CD Now for $60 per customer. CD Now’s annual retention rate was 60 percent and customers generated $15 of profit per year. Assuming an annual discount rate of 12 percent, evaluate AOL’s purchase of CD Now customers. Assume profits occur at the end of each period.

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AOL bought customers from CD Now for $60 per customer. CD Now’s annual retention rate was 60 percent...

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