Network-service provider economics: assess customer value under different contract terms and cost structures.

With revenue $40/month (first 3 months free), service cost $25/month, install cost $35, and marketing & overhead $120 per new customer, what is the net value of a customer on a 15-month contract (10 K acquisitions/year)? How does the net value change if the contract term increases to 18 months? Explain. If term = 21 months, 10 % churn incurs a $100 penalty, marketing cost falls to $20 variable plus $1 M fixed overhead, how many customers are needed to break even?

Lay out cash flows month-by-month, separate variable and fixed costs, include churn penalties.

Capital One Data Scientist interview question: Assess Customer Value with Varied Contract Terms and Costs. {"blocks": [{"key": "207bdbc2", "text": "Scenario", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {...