Answered step by step
Verified Expert Solution
Question
1 Approved Answer
give me answer by excel Tvlenol Crisis 1982 Projected Sales (before crisis) 1982: $500,000 Actual Sales of 1982: $250,000 Tylenol has a choice to recall
give me answer by excel
Tvlenol Crisis 1982 Projected Sales (before crisis) 1982: $500,000 Actual Sales of 1982: $250,000 Tylenol has a choice to recall ALL product from all stores or leave them on the shelves They also had to decide whether they make a public statement or not. If they recalled the product (000s) Immediate Cost of Recall Product: $200,000 Immediate Cost of Recall Labor: $150,000 Immediate Cost of Recall PR: $100,000 Increased Adverting Cost in 1983 and 1984: $50,000 Increased Adverting Cost in 1985: $25,000 Discount Couponing in 1983, 1984 & 1985: 25% Sales in 1983: 10% increase on actual 1982 Sales Sales increase after 1983: 17% per year .If they did nothing Sales in 1983: 60% decrease on actual 1982 Sales Sales increase after 1983: 10% per year What should they do? Use NPV to decide with a 15% cost of capital Tvlenol Crisis 1982 Projected Sales (before crisis) 1982: $500,000 Actual Sales of 1982: $250,000 Tylenol has a choice to recall ALL product from all stores or leave them on the shelves They also had to decide whether they make a public statement or not. If they recalled the product (000s) Immediate Cost of Recall Product: $200,000 Immediate Cost of Recall Labor: $150,000 Immediate Cost of Recall PR: $100,000 Increased Adverting Cost in 1983 and 1984: $50,000 Increased Adverting Cost in 1985: $25,000 Discount Couponing in 1983, 1984 & 1985: 25% Sales in 1983: 10% increase on actual 1982 Sales Sales increase after 1983: 17% per year .If they did nothing Sales in 1983: 60% decrease on actual 1982 Sales Sales increase after 1983: 10% per year What should they do? Use NPV to decide with a 15% cost of capitalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started