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Assume that a customer shops at a local grocery store spending an average of ?$300 a? week, resulting in the retailer earning a ?$45 profit each week from this customer. Assuming the shopper visits the store all 52 weeks of the? year, calculate the customer lifetime value if this shopper remains loyal over a? 10-year life-span. Also assume a 3 percent annual interest rate and no initial cost to acquire the customer.

Operation Management, Management Studies

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