Kalisha's restaurant supply company offers a group discount for orders exceeding $20.$ Two firms are taking advantage of this offer. Sales to Company A averages $$25,000$ of annual sales, has a $15\%$ profit margin and an expected lifetime of

$7$ years. Company B averages $$23,000$ of annual sales, has a $13\%$ profit margin and an expected lifetime of $9$ years. Which is the more important customer based on the higher expected lifetime value? Assume a $7\%$ discount rate.

a$.$ Company A$\text{'}$s NPV $=$$$20,210,$ Company B$\text{'}$s NPV $=$$$19,481.$ Therefore, Company A is the more important customer.

b$.$ Company A$\text{'}$s NPV $=$$$21,625,$ Company B$\text{'}$s NPV $=$$$20,844.$ Therefore, Company A is the more important customer.

c$.$ Company A$\text{'}$s NPV $=$$$20,844,$ Company B$\text{'}$s NPV $=$$$21,625.$ Therefore, Company B is the more important customer.

d$.$ Company A$\text{'}$s NPV $=$$$19,481,$ Company B$\text{'}$s NPV $=$$$20,210.$ Therefore, Company B is the more important customer.