See how the choice of discount rate changes the present value of future cash flows and shifts CLV estimates. Compare scenarios to gauge how sensitive segments and plans are to the rate you choose.
Raising the discount rate while holding cash flows constant will ______ the CLV estimate.
not change
only change payback
decrease
increase
In CLV models that use profit, using margin (not revenue) ensures you estimate ______ value.
gross sales
impression
contribution
reach
A scenario table that tests multiple discount rates is mainly used to assess ______.
pixel latency
cookie decay
creative fatigue
sensitivity of CLV to the rate assumption
When retention improves and the discount rate stays the same, CLV generally ______.
decreases
becomes undefined
stays flat
increases
For subscription CLV, discounting future profits recognizes the ______.
bot filtering
ad frequency cap
cookie window
time value of money
Using an excessively high discount rate can bias decisions toward ______ gains over durable value.
inventory breadth
server uptime
short‑term
format diversity
A positive NPV of customer cash flows indicates the segment is expected to ______ value at the chosen rate.
neutralize
destroy
create
hide
Keeping the discount rate fixed, lowering contribution margin will ______ CLV.
increase
reduce
not affect
only affect revenue
When comparing plans, holding the discount rate constant allows a fair test of differences in ______.
tracking pixels
retention and margin drivers
ad placements
creative color
Discounting to present value prevents over‑weighting ______ cash flows in CLV.
organic
last‑click
distant
first‑session
Starter
Solid start—review time value basics and how discount rates affect CLV.
Solid
Good grasp—practice sensitivity tables and margin‑adjusted cash flows.
Expert!
Mastery—your CLV models reflect disciplined discounting and risk assumptions.
