Question

Assume that a customer shops at a local grocery store spending an average of

​$400

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

8 percent annual interest rate and no initial  cost to acquire  the coustmer

the customer yields $ per yearin orofit for this retailer

percent annual interest rate and no initial cost to acquire the customer.

The customer yields

​$nothing

per year in profits for this retailer.

Answer 1