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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 20. Two firms are taking advantage of this offer. Sales to Company A averages $25,000 of annual sales, has a 18% profit margin and an expected lifetime of 8 years. Company B averages $22,000 of annual sales, has a 20% 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.
Company B because its NPV =$25,349
Company B because its NPV =$28,667
Company A because its NPV =$26,871
Company A because its NPV =$29,654
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