a.Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns, and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent.

b.Are they improving or declining?

Page A-3 THE HOME DEPOT. INC. in millions, except per share data Fiscal 2018 Fiscal 2017 Fiscal 2016 Net sales $ 108,203 $ 100,904 $ 94.595 Cost of sales 71,043 66,548 62,282 Gross profit 37,160 34.356 32,313 Operating expenses: Selling, general and administrative 19,513 17,864 17,132 Depreciation and amortization 1,811 1,754 Impairment loss Total operating expenses 21,630 19,675 18,886 Operating income 15,530 14,681 13,427 Interest and other (income) expense: Interest and investment income (74) (36) Interest expense 1,057 972 Other Interest and other, net 974 983 936 Earnings before provision for income taxes 14.556 13,698 12,491 Provision for income taxes 3,435 5,068 4.534 Net earnings $ 11,121 $ 8,630 $ 7,95 Basic weighted average common shares 1,137 1,178 1,220 Basic earnings per share $ 9.78 $ 7.33 $ 6.47 Diluted weighted average common shares 1,143 1,184 1,234 Diluted earnings per share $ 9.73 $7.29 $ 6.45 Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements. Page A-4 THE HOME DEPOT. INC. in millions Fiscal 2018 Fiscal 2017 Fiscal 2016 Net earnings $ 11,121 $ 8,630 $ 7,957 Other comprehensive (loss) income: Foreign currency translation adjustments (267) 311 (3) Cash flow hedges, net of tax 53 (1) 34 Other 8 (9 ) Total other comprehensive (loss) income (206) 301 31 Comprehensive income $ 10,915 $ 8,931 $7,988 Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements. Page A-5Use Home Depot's financial information in Appendix A. a. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns, and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. b. Are they improving or declining? Complete this question by entering your answers in the tabs below. Required A Required B Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns, and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest whole number (i.e. $1,234,500 should be considered as $1,235.). Round your percentage answers to 1 decimal place (i.e., 0.123 should be considered as 12.3.).) Show less A 2017 2018 ROI 19.3 X % 40.7 X % EVA X X