What is the 5-year NPV associated with the savings from eliminating route C and servicing Hospital 3 only once daily on route A? Assume a 5% discount rate.

Background:

5 days a week, every week, warehouses 1 and 2 run the routes found on the daily route data. We pay an external courier $1.75 per mile + $10 per stop including the initial pickup and return stops. All routes start and return to a warehouse and a generalized layout of the area can be found below.

Daily Route Data:

Route	Stop Order	Stop Location	Incremental Distance (miles)
Route A	1	Warehouse 1	0
Route A	2	Hospital 1	20.4
Route A	3	Hospital 2	13.6
Route A	4	Hospital 3	36.7
Route A	5	Hospital 4	24.4
Route A	6	Warehouse 1	32.7
Route B	1	Warehouse 2	0
Route B	2	Hospital 5	20.6
Route B	3	Hospital 6	10.5
Route B	4	Hospital 7	23.2
Route B	5	Hospital 8	13
Route B	6	Hospital 9	13
Route B	7	Warehouse 2	22
Route C	1	Warehouse 1	0
Route C	2	Hospital 3	28.3
Route C	3	Warehouse 1	28.3
Route D	1	Warehouse 2	0
Route D	2	Hospital 5	20.6
Route D	3	Hospital 6	10.5
Route D	4	Hospital 10	40.6
Route D	5	Hospital 7	33.9
Route D	6	Warehouse 2	32

Map:

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