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Kirabo's International restaurant supply company offers a group discount for orders exceeding 2 0 . Two firms are taking advantage of this offer. Sales to
Kirabo's International restaurant supply company offers a group discount for orders exceeding Two firms are taking advantage of this offer. Sales to Company A averages $ of annual sales, has a profit margin and an expected lifetime of years. Company B averages $ of annual sales, has a profit margin and an expected lifetime of years. Which is the more important customer based on the higher expected lifetime value? Assume a discount rate.
Company B because its NPV $
Company B because its NPV $
Company A because its NPV $
Company A because its NPV $
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