Calculate the customer lifetime value

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Reference no: EM132086238

Assume that a customer shops at a local grocery store spending an average of $150 a week, resulting in the retailer earning a $50 profit each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life-span. Also assume a 3 percent annual interest rate and no initial cost to acquire the customer.

This customer yields$ ____ per year in profits for this retailer.

Reference no: EM132086238

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