What is the present value of this customer

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Reference no: EM132401795

Assume the annual profit from a credit-card customer is year 1 $100, year 2 $125, year 3 $150, year 4 $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 seven years?

Reference no: EM132401795

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