What is the present value of customer

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Assume the annual profit from a credit card customer is year1 $100, year2 $125, year3 $150,, year4 $150, year 5 $150, year 6 $200, year 7 $250. Each year there is a 100% chance of keeping the customer and the discount rate is 15%. What is the present value of this customer over the next 7 years.

Reference no: EM132179557

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