Assume that a customer shops at a local grocery store spending an average of ?$150 a?...

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Assume that a customer shops at a local grocery store spendingan average of ?$150 a? week, resulting in the retailer earning a?$25 profit each week from this customer. Assuming the shoppervisits the store all 52 weeks of the? year, calculate the customerlifetime value if this shopper remains loyal over a? 10-yearlife-span. Also assume a 4 percent annual interest rate and noinitial cost to acquire the customer.
This customer yields ?$1300 per year in profits for thisretailer. ?(Round to the nearest? dollar.)
The customer lifetime is ?$_______. (Round to the nearest?dollar.)

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The customers live time value can be computed by adding discounted present value of annual profits See Answer

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Assume that a customer shops at a local grocery store spendingan average of ?$150 a? week, resulting in the retailer earning a?$25 profit each week from this customer. Assuming the shoppervisits the store all 52 weeks of the? year, calculate the customerlifetime value if this shopper remains loyal over a? 10-yearlife-span. Also assume a 4 percent annual interest rate and noinitial cost to acquire the customer.This customer yields ?$1300 per year in profits for thisretailer. ?(Round to the nearest? dollar.)The customer lifetime is ?$_______. (Round to the nearest?dollar.)