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Assume that a customer shops at a local grocery store spending an average of $250 a week, resulting in a retailer profit of $15 each
Assume that a customer shops at a local grocery store spending an average of $250 a week, resulting in a retailer profit of $15 each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer a lifetime value if the shopper remains loyal over a ten-year lifespan. Also assume a 9% annual interest rate and no initial cost to acquire the customer.
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