You do some research to better understand the grocery store and learn that the average

consumer spends $645 on trader joes per year. Trader Joes generally have a net profit margin of 15% and marketing/retention costs of approximately 5% of sales revenue.

Dispensaries have a 40% customer retention rate.

(a) Calculate the customer's lifetime value. Assume a lifetime of 3 years and a discount rate

of 10%. Show all your work.