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Customer shops at a local grocery store

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Reference no: EM131219873

Assume that a customer shops at a local grocery store spending an average of $350 a week, resulting in a retailer profit of $25 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.

The customer yields $ per year in profits for this retailer. (Round to the nearest dollar.)

The customer lifetime value is$ (Round to the nearest dollar.)

Reference no: EM131219873

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