Assume the annual profit from a credit-card customer is year 1 $100, year 2 $125, year 3 $150, year 4 $150, year 5, $150, year 6 $200, year 7 $250.

Each year there is a 100% chance of keeping the customer and the discount rate is 15%.

What is the present value of this customer over the next seven years?

Answer rating: 100% (QA)

The present value of this customer over the next seven years is 75648 Heres how we can calculate it ... View the full answer