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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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that a customer shops at a local grocery store spending an average of $300 a week, resulting in a retaller 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.)
Transcribed Image Text:Assume that a customer shops at a local grocery store spending an average of $300 a week, resulting in a retaller 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.)
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