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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 $ a week, resulting in the retailer earning a $ profit each week from this customer. Assuming the shopper visits the store weeks of the year, calculate the customer lifetime value if this shopper remains loyal over ayear lifespan. Also assume a percent annual interest rate and that the initial customer acquisition cost is $ per customer. What is the customerlifetime value over the years? Round to the nearest dollar.
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