Assume that a customer shops at a local grocery store spending an average of $300 a week, resulting in a retailer profit of $30 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 S per year in profits for this retailer. (Round to the nearest dollar)

Assume that a customer shops at a local grocery store spending an average of $300 a week, resulting in a retailer profit of $30 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 S per year in profits for this retailer. (Round to the nearest dollar)

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 3DTM

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