Question: Use Excel should be great

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 - 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 Advertising 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: 18% per year If they did nothing - Sales in 1983: 65% decrease on actual 1982 Sales Sales increase after 1983:15% per year - What should they do? Use NPV to decide with a 15% cost of capital 11/16/22