The problem with this answer is that there excel sheet did not include an $850$ customer coloumn, resulting in $0$ new retained customers in year $1.$ My sheet shows $800$ customers at $80\%$ and $850$ customers at $85\%$ retention. This mishap creates a lot of discrepencies starting with an incorrect number of customers for row $16.$ When I do the same calculations on my spreadsheet it shows scenario $2$ will be more profitable. The point of this assignment is to show how retaining customers is more profitable than attaining new customers.