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Assume that a customer shops at a local grocery store spending an average of $400...

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Accounting

Assume that a customer shops at a local grocery store spending an average of $400 a week, resulting in the retailer earning a $10 profit 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 7 percent annual interest rate and no initial cost to acquire the customer. This customer yields $ nothing per year in profits for this retailer.

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