A regional electrical distributor currently has $1,000$ customers who buy an average of $$6,000$ per year, generating a $50\%$ margin. From experience, the company knows that $25\%$ of its customers will not return the next year and it takes an average of $$500$ to acquire each new customer.

Given a choice of $1)$ investing $$50,000$ in a new customer acquisition program for $100$ additional customers or $2)$ investing $$50,000$ in a new retention program which would take the rate of retention from $75\%$ to $80\%,$ what should the company do$?$ To properly answer this question, you need to complete the Excel template for both scenarios $($customer acquisition and customer retention$)$ to show which option is the most profitable. Assume the new programs are in effect and you are calculating the impact for both beginning Year $1.$ Also, do not account for the cost of the programs since they are the same cost and it doesn't impact the overall conclusion.

Restrict your analysis to a five$$year period $($see the template for an easy analysis: NAME$$

Five Year Payout