Assume the annual profit from a credit-card customer in year 1 is $100, year 2 is $125, year 3 is $150, year 4 is $150, year 5 is $150, year 6 is $200, and year 7 is $250.

Each year there is a 50% chance of keeping the customer and the discount rate is 25%.

What is the present value of this customer over the next seven years?

If possible, can you please show me how to solve this on excel and by hand?

Thank you so much!