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Find the total cost for each network in the excel file Transportation LP Example 2 (both sheets). Sheet one is the current network (network 1),

Find the total cost for each network in the excel file Transportation LP Example 2 (both sheets). Sheet one is the current network (network 1), sheet two is the proposed new network (network 2). Comparing the two networks and using the following information, should the company change their network to network number 2? Submit one excel file with your written statements in a text box.

20.00% Tax Rate
Straight Line Depreciation
5 year useful life
No Salvage Value
12.00% Discount Rate
1 year construction cycle
265,000 Initial Investment
24% Hurdle Rate

Chart on the left is network1, chart on the right is network2

image text in transcribedimage text in transcribed

1 2 3 C To Froes DC1 C2 DC Supply Plasti 512 25.000 Plast2 $10 $11 $14 40.000 Plants S12 55.000 Denad 70,000 30,000 20.000 5 SIS 8 From 10 Plasti 11 Plast 2 12 Plant 3 13 Received 14 Demand To DCI DC DC Shipped 0 0 0 0 0 0 0 70,000 30,000 20.000 oooo oooo Ooo Suri 25,000 40,000 55.000 0 0 0 DC1 15 16 Total Cost 17 Free 18 19 Piant 1 20 Plast 2 21 Plant 3 22 ololo To DC 2 0 O 0 DXC3 0 0 0 Total Cos Pro na 1 2 Te DC 2 DCS 512 25.000 SIL 514 40.00 53 SIS 55.000 57 SLO 20.000 DCI SII SIO 512 55 4 5 a 7 Demed 70.000 20.000 200.000 DC1 To DC DC Shipped 99 11 12 13 14 0 0 0 0 0 0 o . Past 15 Reed 56 Dead 70.000 30.000 20.000 Ooo Oooo 55.000 28000 11 18 19 Total Cout To DXC 21 O . o o . o o . o Todos 24 1 1 2 3 C To Froes DC1 C2 DC Supply Plasti 512 25.000 Plast2 $10 $11 $14 40.000 Plants S12 55.000 Denad 70,000 30,000 20.000 5 SIS 8 From 10 Plasti 11 Plast 2 12 Plant 3 13 Received 14 Demand To DCI DC DC Shipped 0 0 0 0 0 0 0 70,000 30,000 20.000 oooo oooo Ooo Suri 25,000 40,000 55.000 0 0 0 DC1 15 16 Total Cost 17 Free 18 19 Piant 1 20 Plast 2 21 Plant 3 22 ololo To DC 2 0 O 0 DXC3 0 0 0 Total Cos Pro na 1 2 Te DC 2 DCS 512 25.000 SIL 514 40.00 53 SIS 55.000 57 SLO 20.000 DCI SII SIO 512 55 4 5 a 7 Demed 70.000 20.000 200.000 DC1 To DC DC Shipped 99 11 12 13 14 0 0 0 0 0 0 o . Past 15 Reed 56 Dead 70.000 30.000 20.000 Ooo Oooo 55.000 28000 11 18 19 Total Cout To DXC 21 O . o o . o o . o Todos 24 1

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