The lifetime value of a local car dealership for an average customer is $120,000.
A lifetime value is an average amount that is being earned by the customer over the time period till its being a customer of a particular service.
Given values:
Amount spent by customer: $30,000
The average number of years: 40 years
Computation of lifetime value (LTV):
[tex]\rm\ LTV=\rm\ Average \rm\ number \rm\ of \rm\ years \times\ \rm\ Amount \rm\ spent \rm\ by \rm\ a \rm\ customer\\\rm\ LTV= 40 \times\ \$30,000\\\rm\ LTV=\$120,000[/tex]
Therefore, when a customer spends $30,000 on a car dealership for 40 years of average time then its lifetime value would be $120,000.
Learn more about the lifetime value in the related link:
https://brainly.com/question/16926291
#SPJ1
