The first photo represents the problem and the questions and the second one is some formulas that need to be determined to find the required outputs.. The last picture is a clear shot for the table that is required to use the parameters in the equations.

Currently the company has an average demand to deliver 2000 packages everyday which is expected to grow at 10% per month. The blue-collar workers can currently manage 20 packages each (sorting and loading) which can be increased to 30 packages per worker with the new facility and sorting machine. Further, the mailman at the company currently spends 3hrs in the warehouse due to sorting and loading activities and only 4hrs delivering packages. This leads to not all packages being delivered on the same day and delayed packages attract a penalty for the company at $10 per delayed package. This can be reduced to waiting time in the facility and full 7 hours can be utilized on delivering the packages with the introduction of the new system. However, the benefits come with following cost: 1. Extra rent for the new warehouse 2. Machine installation and monthly running cost 3. Route Optimization software cost Full benefit and value to be realized in 5 months. Net gain to be calculated based on the benefits in the next 5 months Improvement initiative related KPI's baseline: No. of packages delayed at present (total penalty cost) - 800 packages delayed daily at present out of 2000 average daily packages (total monthly penalty - $240,000) Total workers employed and wages required at present - 100 workers required at present for 2000 average daily packages (Total monthly wage - $ 200,000) Based, on the provided data, develop a business case and calculate the NPV, IRR, Payback period and ROI to decide whether the initiative is worth investment or not? Use the following data to solve the problem and remember it is just for 5 months. Unit Packages per day Parameter Average Orders per day Growth Blue-Colar Worker Current capacity (no. of packages handled by 1 worker) After implementation - Blue-colar worker capacity Cost of each blue colar worker Penalty per packet No of Packagaes delivered per hour by the malman No. of mailman Number of hours mailman spend sorting and loading their veicules Number of hours delivering Work Journey Cost of capital (WACC) Amount 2000 10 20 30 $2,000 $10 6 50 Packages per day Packages per day Dollar Dollar Packages per hour 3 4 7 hours hours hours 10% Old Rent New Rent Sortation Machine Machine running Cost Optimization analytics tool $500,000 550.000 $30.000 per month $60.000 per month Jione time) per month $25,000 per month Discount Factor 1/ wao year For NPV Calculation but can directly be done using inbuilt excel function for NPV For NPV Calculation but can directly be done using inbuilt excel function for NPV 0.91 0.83 0.75 0.68 0.62 cash flow of the year discount factor $0 Discounted Cash Flow Cumulative Net Cash Flow Paybook Period Calculation so SO SO SO SO SO so SO SO $0 0.00 Unit Packages per day Parameter Average Orders per day Growth Blue-Collar Worker Current capacity (no. of packages handled by 1 worker) After implementation-Blue-collar worker capacity Cost of each blue collar worker Penalty per packet No. of Packagaes delivered per hour by the mailman No. of mailman Number of hours mailman spend sorting and loading their veicules Number of hours delivering Work Journey Cost of capital (WACC) Amount 2000 10% 20 30 $2,000 $ $10 6 50 Packages per day Packages per day Dollar Dollar Packages per hour 3 4 7 hours hours hours 10% Costs Old Rent New Rent Sortation Machine Machine running Cost Optimization analytics tool S500.000 $50,000 $30,000 per month $60,000 per month (one time) per month $25,000 per month Currently the company has an average demand to deliver 2000 packages everyday which is expected to grow at 10% per month. The blue-collar workers can currently manage 20 packages each (sorting and loading) which can be increased to 30 packages per worker with the new facility and sorting machine. Further, the mailman at the company currently spends 3hrs in the warehouse due to sorting and loading activities and only 4hrs delivering packages. This leads to not all packages being delivered on the same day and delayed packages attract a penalty for the company at $10 per delayed package. This can be reduced to waiting time in the facility and full 7 hours can be utilized on delivering the packages with the introduction of the new system. However, the benefits come with following cost: 1. Extra rent for the new warehouse 2. Machine installation and monthly running cost 3. Route Optimization software cost Full benefit and value to be realized in 5 months. Net gain to be calculated based on the benefits in the next 5 months Improvement initiative related KPI's baseline: No. of packages delayed at present (total penalty cost) - 800 packages delayed daily at present out of 2000 average daily packages (total monthly penalty - $240,000) Total workers employed and wages required at present - 100 workers required at present for 2000 average daily packages (Total monthly wage - $ 200,000) Based, on the provided data, develop a business case and calculate the NPV, IRR, Payback period and ROI to decide whether the initiative is worth investment or not? Use the following data to solve the problem and remember it is just for 5 months. Unit Packages per day Parameter Average Orders per day Growth Blue-Colar Worker Current capacity (no. of packages handled by 1 worker) After implementation - Blue-colar worker capacity Cost of each blue colar worker Penalty per packet No of Packagaes delivered per hour by the malman No. of mailman Number of hours mailman spend sorting and loading their veicules Number of hours delivering Work Journey Cost of capital (WACC) Amount 2000 10 20 30 $2,000 $10 6 50 Packages per day Packages per day Dollar Dollar Packages per hour 3 4 7 hours hours hours 10% Old Rent New Rent Sortation Machine Machine running Cost Optimization analytics tool $500,000 550.000 $30.000 per month $60.000 per month Jione time) per month $25,000 per month Discount Factor 1/ wao year For NPV Calculation but can directly be done using inbuilt excel function for NPV For NPV Calculation but can directly be done using inbuilt excel function for NPV 0.91 0.83 0.75 0.68 0.62 cash flow of the year discount factor $0 Discounted Cash Flow Cumulative Net Cash Flow Paybook Period Calculation so SO SO SO SO SO so SO SO $0 0.00 Unit Packages per day Parameter Average Orders per day Growth Blue-Collar Worker Current capacity (no. of packages handled by 1 worker) After implementation-Blue-collar worker capacity Cost of each blue collar worker Penalty per packet No. of Packagaes delivered per hour by the mailman No. of mailman Number of hours mailman spend sorting and loading their veicules Number of hours delivering Work Journey Cost of capital (WACC) Amount 2000 10% 20 30 $2,000 $ $10 6 50 Packages per day Packages per day Dollar Dollar Packages per hour 3 4 7 hours hours hours 10% Costs Old Rent New Rent Sortation Machine Machine running Cost Optimization analytics tool S500.000 $50,000 $30,000 per month $60,000 per month (one time) per month $25,000 per month