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Assume that a customer shops at a local coffee shop spending an average of $ 5 0 a week, resulting in the retailer earning a

Assume that a customer shops at a local coffee shop spending an average of $50 a week, resulting in the retailer earning a $39 profit each week from this customer. Assuming the shopper visits the store 48 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a5-year life-span. Also assume a 8 percent annual interest rate and that the initial customer acquisition cost is $50 per customer. What is the customer-lifetime value over the 5 years? Round to the nearest dollar.

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