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By your logic you shouldn't invest in a university education because you're not earning a profit while at University. This is what's important to understanding
by rdlecler1 10y ago
By your logic you shouldn't invest in a university education because you're not earning a profit while at University. This is what's important to understanding startup economics:
IF: CAC < NPV(LTV)
THEN: reinvest your earnings and generate zero to negative profit.
Where:
CAC: Customer Acquisition Cost
LTV: Lifetime Value of the Customer
NPV: Net Present Value