Calculate the net present value of 1 regular customer

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At Dive Shop Inc, regular customers place about 5.0 orders per year. These orders average $93 in retail value, and contribution margin percent is typically 44%. Acquiring a new customer costs Dive Shop about $118, and Dive Shop also spends $33 per customer per year on contests, deals, and communications to keep them coming back. Dive Shop's retention rate is 80%, and the corporate discount rate is 10%. Calculate the net present value of 1 regular customer at Dive Shop. Rounding: penny. Remember, the answer may be negative. Please show steps.

Reference no: EM132392278

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