Year Recurring Revenue Recurring Cost Net Margin Discounted Margin Probability of Retention

1 650 550 100 100 0.6

2 780.00 594.00 186.00 173.83 0.54
3 936.00 641.52 294.48 257.21 0.49
4 1123.20 692.84 430.36 351.30 0.44
5 1347.84 748.27 599.57 457.41 0.39
6 1617.41 808.13 809.28 577.00 0.35
7 1940.89 872.78 1068.11 711.73 0.32
8 2329.07 942.60 1386.46 863.42 0.29
9 2794.88 1018.01 1776.87 1034.15 0.26
10 3353.86 1099.45 2254.40 1226.25 0.23
11 4024.63 1187.41 2837.22 1442.30 0.21
12 4829.55 1282.40 3547.15 1685.23 0.19
13 5795.47 1384.99 4410.47 1958.30 0.17
14 6954.56 1495.79 5458.77 2265.19 0.15
15 8345.47 1615.46 6730.01 2610.02 0.14
Expected margin Cost of Acquiring LTV Cumulative Lifetime Value
60 56 4 4
93.87 61.60 32.27 36.27
125.00 67.76 57.24 93.51
153.66 74.54 79.12 172.64
180.06 81.99 98.07 270.71
204.43 90.19 114.24 384.95
226.94 99.21 127.74 512.69
247.78 109.13 138.65 651.34
267.10 120.04 147.06 798.40
285.04 132.05 153.00 951.40
301.74 145.25 156.49 1107.89
317.31 159.77 157.53 1265.42
331.85 175.75 156.10 1421.52
345.47 193.33 152.14 1573.66
358.25 212.66 145.59 1719.25