Assume that a customer shops at a local grocery store spending an average of $$150$ a week, resulting in a retailer profit of $$40$ 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 $7$ percent annual interest rate and no initial cost to acquire the

customer.

Hint: Use the formula for Net Present Value $($NPV$)$ to calculate customer lifetime value.

The customer yields $ per year in profits for this retailer. $($Round to the nearest dollar.$)$