Many companies use e-mail to advertise their products. Your company is trying to sell a new product and is advised to use e-mail. All the e-mail addresses are of people who have agreed to receive promotional e-mail about products such as the one you try to sell. The profit on each unit sold is $200. Developing the attractive e-mail message, use of 2,750,000 e-mail addresses, and sending the message would cost $25,000. Experience shows that 5 percent of the initial recipients forward such messages to friends and family. Experience also shows that 2 percent of all recipients actually click the Web address included in the message and visit the commercial site. Of these visitors, 0.5 percent end up purchasing the advertised item. Using Microsoft Excel or another spreadsheet, answer the following questions:

 

(1) Would you generate a profit if you used this advertising opportunity?

(2) Would you profit if you could e-mail only 1,000,000 people?