Tylenol Crisis 1982 Projected Sales [before crisis] 1002: $500,000 - Actual Sales of 1002: $250,000 - Tylenol has a choice to recall ALL product from all stores or Ieaye them on the shelyes The-y 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 Boat in 1003 and 1004: $50,000 Increased Adverting Best in 1005: $25,000 Discount Couponing in 1000. 1004 0 1005: 25% Sales in 1003: 10% increase on actual 1002 Sales - Sales increase after 1003: 1?\".0 per year - If they did nothing - Sales in 1003: 00% decrease on actual 1002 Sales - Sales increase after 1003: 10% per year - What should they do? Use NW to decide with a 15% cost of capital 4111110