Two equal LTVs could results in pretty different NPV results depending on the expected lifetime, and using both averages for the discount definitely has some error.
That's a good point. I'm reminded of von Neumann's quip that
"with four parameters I can fit an elephant, and with five I can make him wiggle his trunk."
Comments
Two equal LTVs could results in pretty different NPV results depending on the expected lifetime, and using both averages for the discount definitely has some error.
That's a good point. I'm reminded of von Neumann's quip that "with four parameters I can fit an elephant, and with five I can make him wiggle his trunk."