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Assume that a customer shops at a local grocery store spending an average of $400 per...

Assume that a customer shops at a local grocery store spending an average of $400 per week, resulting in a retail profit of $40 per 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 8 percent annual interest rate and no initial cost to acquire the customer.

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D13 PROFIT PER YEAR 1 YEAR PROFIT WEEKS 40 52 52 52 52 52 52 52 52 52 52 52 2 2080 RATE 4 4 10 30132.05

Formula for FV(future value) is shown in the FX bar of excel

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