A certain newspaper has an annual subscription price of $338, and annual variable costs per subscriber are $300. Current retention spending is $8 a year per customer resulting in an attrition rate of 23% per year.
The marketing department estimates that if the newspaper were to increase its retention spending to $12 a year, the attrition rate would be reduced to 15%. What would be the difference in the CLV if the spending is increased and a discount rate of 13% is used?
Please post the Excel formula
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