Customer Lifetime Value (SMALL BOOK 167-177) * Customer lifetime value (CLV)‚ is the net present value of the cash flows attributed to the relationship with a customer. * The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction‚ rather than on maximizing short-term sales. * Two approaches to CLV: * Disaggregate (“spreadsheet”)– Complex and cumbersome‚ but allows you to build in any assumptions
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Overview This example illustrates how to use LabVIEW and the LabVIEW Control Design and Simulation Module to simulate a wind turbine. Downloads Filename: windturbinesim.zip Requirements: View You can use LabVIEW and the LabVIEW Control Design and Simulation Module to simulate a full wind turbine system‚ including the wind turbine‚ mechanical drive train‚ generator‚ power grid‚ and controller. The Control Design and Simulation Module provides a numerical simulation environment that allows you
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1. INTRODUCTION In 1992‚ Arundel Partners was looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights were to be purchased prior to films being made. Arundel wanted to determine if this innovative business strategy is viable by estimating the value of the sequel rights. 2. OBJECTIVE Our report aims to investigate the viability of the implementation of Arundel’s strategy in purchasing sequel rights to produce
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Overview of Relevant Formulas Corporate Finance (B40.2302) _________________________________________________________________________________________ 1. Present value of $1 to be received after t years at discount rate r: 2. Present value of annuity of $1 per year for t years at discount rate r: $1 (1 + r )t ⎡1 − (1 + r ) − t ⎤ ⎢ ⎥ × $1 r ⎣ ⎦ 1 ⎡ (1 + g )t ⎤ 3. Present value of growing annuity of $1 at rate g per year at discount rate r: ⎢1 − ⎥ × $1 r − g ⎣ (1 + r )t ⎦ $1 r 4. Present value
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Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Septtember 2013 Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Introduction Over the 46 years ending December 2012‚ Warren Buffett (Berkshire Hathaway) has achieved a compound‚ after-tax‚ rate of return in excess of 20% p.a. Such consistent‚ long term‚ out performance might be viewed as incompatible with modern finance theory. This essay discusses the Berkshire Hathaway phenomenon in
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Philippine Normal University Taft Avenue‚ Manila S.Y. 2013-2014 GRAPH OF COSINE FUNCTION (Semi - Detailed Lesson Plan) Submitted by: Rañola‚ Rachel L. III – 18 BSE Mathematics Submitted to: Prof. Imperio FIELD STUDY PROFESSOR September 13‚ 2013 I. TOPIC: GRAPHING COSINE FUNCTION Subtopic: Properties of Cosine Function Shifting of the graph References: 1. Advance Algebra‚ Trigonometry and Statistics
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Basic Financial Calculations 1.1 Overview This chapter aims to give you some fi nance basics and their Excel implementation. If you have had a good introductory course in fi nance‚ this chapter is likely to be at best a refresher.1 This chapter covers • Net present value (NPV) • Internal rate of return (IRR) • Payment schedules and loan tables • Future value • Pension and accumulation problems • Continuously compounded interest Almost all fi nancial problems center on fi nding the value
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MATH 152 MIDTERM I 02.11.2012 P1 P2 P3 Name&Surname: Student ID: TOTAL Instructions. Show all your work. Cell phones are strictly forbidden. Exam Duration : 70 min. 1. Show that 1 p n (ln n) n=2 converges if and only if p > 1: Solution: Apply integral test: Z Z ln R 1 X R 2 1 p dx x (ln x) p=1 p 6= 1 let ln (x) = u then ln 2 so that when p = 1 and p < 1 integral diverges by letting R ! 1‚ so does the series. When p > 1 then integral converges to ! 1 p 1 p 1 p (ln R) (ln 2) (ln
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ANNUITY DUE An annuity for which the periodic payments are made at the beginning of each payment interval. The term of an annuity due begins on the date of the first payment interval after the last payment is made. FUTURE VALUE OF ANNUITY DUE 1. Using the Annuity Table * Uses the same table as ordinary annuities but with some modifications. Example : Ferdie Gonzales deposited P6‚000 at the beginning of each month‚ for 2 years at his credit union. If the
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The Case of Cephalon Based on the contract‚ the strike of the call options is $21.5‚ and capped at $39.5. Thus this is a combination of a call option at $21.5 and a put option at $39.5 two options‚ and the value is the difference between the two. Based on the Balck-scholes call formula‚ among which‚ ； 1）The price of call option with the strike price of $21.5: S=$20;K=$21.5;r=5.5%;T-t=0.5yrs;σ=75% 2）The price of put option with the strike price of $39.5: S=$20;K=$39.5;r=5.5%;T-t=0
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