Velo Mobile Telecommunications

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Velo Mobile Telecommunications spends an average of $840 to acquire a new customer and has an overall 75% retention rate. Each customer costs the company $60 in maintenance costs and $30 in recordkeeping and billing costs annually. Velo offers its customers three different plans: the premium package, purchased by 30% of customers for $65 per month; the super-premium package, purchased by 20% of customers for $100 per month ($65 for premium package benefits plus $35 for a mobile device data plan); and the basic package, purchased by the remaining customers for $40 per month.a. What is the customer lifetime value (CLV) of a (a) basic, (b) premium, and (c) super-premium customer? (Assume a 10% discount rate.)

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