Northeastern students buy their groceries at Star Market. On average, a Northeastern

student spends about $400 per month at Star Market the first year, $300 per month in

the second year, $250 per month in the third year and fourth years, and $450 per month

in the 5th year.

Star Market's cost of goods sold is 80% of the sales revenue and Star Market spends

12% of revenue on sales and marketing expenses.

Calculate the customer lifetime value for the five years of a student.

Use 10% for the net income discounted (Hint: Use a present value table, which can be

 

found online.