subject
Business, 19.10.2021 16:10 kkmoney87

C1: 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 and that the payment is made at the end of each time period, evaluate AOL’s purchase of CD Now customers. Also assume that the customers do not have any obligation to stay with the company. Is it worth for AOL to make this purchase of customers. Will it make a profit from these customers? Specify which formula you use for answering this question (10 Points)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:00
%of the world's population controls approximately % of the world's finances (the sum of gross domestic products)" quizlket
Answers: 1
question
Business, 22.06.2019 13:20
Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?
Answers: 3
question
Business, 22.06.2019 16:50
Slow ride corp. is evaluating a project with the following cash flows: year cash flow 0 –$12,000 1 5,800 2 6,500 3 6,200 4 5,100 5 –4,300 the company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. calculate the mirr of the project using all three methods using these interest rates.
Answers: 2
question
Business, 23.06.2019 02:00
Donna and gary are involved in an automobile accident. gary initiates a lawsuit against donna by filing a complaint. if donna files a motion to dismiss, she is asserting that
Answers: 2
You know the right answer?
C1: AOL bought customers from CD Now for $60 per customer. CD Now’s annual retention rate was 60 per...
Questions
question
Mathematics, 30.08.2020 19:01
question
History, 30.08.2020 19:01
Questions on the website: 13722362