# Monthly Payment Formula

Finance Formulas / July 17, 2018 / Cecelia Weiss

Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. Customer lifetime value is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their customer relationships. Customer lifetime value is an important number because it represents an upper limit on spending to acquire new customers. For this reason it is an important element in calculating payback of advertising spent in marketing mix modeling.

### Unit Product Cost Formula

#### Principal Interest Formula

##### Double Declining Formula

###### Cash Flow To Creditors Formula

Economic profits may be positive, zero, or negative. If economic profit is positive, other firms have an incentive to enter the market. If profit is zero, other firms have no incentive to enter or exit. When economic profit is zero, a firm is earning the same as it would if its resources were employed in the next best alternative. If the economic profit is negative, firms have the incentive to leave the market because their resources would be more profitable elsewhere. The amount of economic profit a firm earns is largely dependent on the degree of market competition and the time span under consideration.

Immediate payment annuities are a valuable retirement planning tool in that they provide a reliable and inexhaustible income stream. In effect, they function as a risk management tool that works like a mirror image of life insurance (which pays a benefit at death).

Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred shares, convertible debentures, stock options, and warrants. Unless a company has no additional potential shares outstanding (rare), the diluted EPS will always be lower than the simple or basic EPS.

### Gallery Of Monthly Payment Formula

### Rate This Monthly Payment Formula

96 out of 100 based on 179 user ratings

In Case You Missed It

## Principal Interest Formula

## Risk Premium Formula

### Accumulated Depreciation Formula

#### Click Through Rate Formula

##### Market Price Formula

###### Profitability Formula

##### Leave Your Reply on Monthly Payment Formula

Continue Reading Below

## Inflation Rate Formula Gdp

## Horizon Value Formula

### Midpoint Formula Microeconomics

#### Nominal Gdp Formula

##### Double Declining Formula

###### Principal Interest Formula