One calculation that connects to an organization’s perspective on customer value is the metric of lifetime value. This discussion focuses on lifetime value to help you gain a deeper understanding of this important metric.

Please answer the following:

How is the metric of lifetime value calculated? (Type in and then explain the basic formula)
Apply the formula to a real world scenario you research or create. List any assumptions you make to move your calculation forward if any assumptions were needed to make it viable.
Now that you have covered the basic formula, and applied it to a real world scenario, reflect upon the nuances of what this formula considers. Do you consider this metric, or this formula, ethical? Support your answer with research as you approach the ethics of this measurement.

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