Sheet1 Project 1 Description:Revamp the 1-hour photo lab by bringing in new lab equipment and a pricing menu board Cap Ex Per Store:$10,000 Sales Lift Per Store:$50,000 GP Rate:20% SG&A1 % of...

Task: Prioritize the following capital expenditure asks (use supplemental detail as needed). Please share any financial models and explain rationale in a one page white paper with references

Sheet1 Project 1 Description:Revamp the 1-hour photo lab by bringing in new lab equipment and a pricing menu board Cap Ex Per Store:$10,000 Sales Lift Per Store:$50,000 GP Rate:20% SG&A1 % of Sales:15% Project 2 Description:Invest in towers that automatically dispense online orders to customers Cap Ex Per Store:$80,000 Expense Savings Per Store:$17,000 Wait Time Reduction (minutes):7 Project 3 Description:Invest in new paint mixing machines that produce better colors and reduce manual work Cap Ex Per Store:$20,000 Sales Lift Per Store:$22,000 GP Rate:25% Expense Savings Per Store:$1,000 Task: Prioritize the following capital expenditure asks (use supplemental detail as needed). Please share any financial models and explain rationale. Notes: - Please use straightline depreciation - Assume a 7 year useful life for each project - Please assume a corporate WACC of 9% 1. SG&A as a % to sales does not include depreciation Sheet2 Photo Do Nothing Forecast ($M)Year 1Year 2Year 3Year 4Year 5 Sales$1,000$920$850$775$715 GP$400$368$340$310$286 SG&A$600$552$510$465$429 Op Income-$200-$184-$170-$155-$143 Online Pickup Do Nothing Forecast ($M)Year 1Year 2Year 3Year 4Year 5 Sales$1,000$1,100$1,225$1,350$1,500 GP$200$220$245$270$300 SG&A$150$165$184$203$225 Op Income$50$55$61$68$75 Paint Do Nothing Forecast ($M)Year 1Year 2Year 3Year 4Year 5 Sales$1,000$1,000$1,000$1,000$1,000 GP$300$300$300$300$300 SG&A$300$300$300$300$300 Op Income$0$0$0$0$0 Supplemental Detail: Below are simple P&Ls for each area of investment. These P&Ls represent a do-nothing scenario for each area. Use as needed and note the numbers presented are not real.