see attachments. Capital Budget Analysis using WACC discount rate

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS amounts in millions, except share and per share data ASSETS Current Assets: Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets January 31, 2016 February 1, 2015 $ $ Total Current Assets 15,302 39,266 17,075 38,513 15,793 22,191 22,720 2,102 1,263 1,353 571 $ 42,549 $ 39,946 $ $ Net Property and Equipment Goodwill Other Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-Term Debt Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.772 billion shares at January 31, 2016 and 1.768 billion shares at February 1, 2015; outstanding: 1.252 billion shares at January 31, 2016 and 1.307 billion shares at February 1, 2015 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost, 520 million shares at January 31, 2016 and 461 million shares at February 1, 2015 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1,723 1,484 11,079 1,016 16,993 Property and Equipment, at cost Less Accumulated Depreciation and Amortization Total Assets 2,216 1,890 11,809 1,078 350 6,565 1,515 476 1,566 34 77 1,943 290 5,807 1,391 434 1,468 35 38 1,806 12,526 11,269 20,888 1,965 854 16,869 1,844 642 36,233 30,624 88 9,347 30,973 (898) 88 8,885 26,995 (452) (33,194) (26,194) 6,316 9,322 $ 42,549 $ 39,946 See accompanying Notes to Consolidated Financial Statements. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) January 31, February 1, February 2, 2016 2015 2014 amounts in millions, except per share data NET SALES Cost of Sales $ GROSS PROFIT Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income Interest Expense $ Interest and Other, net $ 83,176 54,787 $ 78,812 51,897 30,265 28,389 26,915 16,801 1,690 16,280 1,640 16,122 1,627 18,491 17,920 17,749 11,774 10,469 9,166 (166) 919 EARNINGS BEFORE PROVISION FOR INCOME TAXES Provision for Income Taxes NET EARNINGS 88,519 58,254 (337) 830 (12) 711 753 493 699 11,021 4,012 9,976 3,631 8,467 3,082 7,009 $ 6,345 Weighted Average Common Shares 1,277 1,338 BASIC EARNINGS PER SHARE $ 5.49 $ 4.74 Diluted Weighted Average Common Shares 1,283 1,346 DILUTED EARNINGS PER SHARE $ 5.46 $ 4.71 (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. $ $ $ 5,385 1,425 3.78 1,434 3.76 THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year Ended(1) January 31, February 1, February 2, 2016 2015 2014 amounts in millions CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization Stock-Based Compensation Expense Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions: Receivables, net Merchandise Inventories Other Current Assets Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes Other Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $165, $217 and $46 of non-cash capital expenditures in fiscal 2015, 2014 and 2013, respectively Proceeds from Sales of Investments Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Financing Activities Change in Cash and Cash Equivalents $ 7,009 $ 6,345 1,863 244 (144) 1,786 225 (323) (181) (546) (5) 888 109 154 15 (33) (81) (124) (199) 244 146 168 159 (104) $ 5,385 1,757 228 (15) (455) (5) 605 75 119 (31) (35) 9,373 8,242 7,628 (1,503) 144 (1,666) 43 (1,442) 323 (200) 48 (1,389) (206) 88 (2,982) (1,271) (1,507) 60 3,991 (39) (7,000) 228 (3,031) 4 290 1,981 (39) (7,000) 252 (2,530) (25) 5,222 (1,289) (8,546) 241 (2,243) (37) (5,787) (7,071) (6,652) (100) (531) 604 Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year (111) (106) 1,723 $ (34) 1,929 2,216 $ 1,723 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized $ 874 $ 782 Income Taxes $ 3,853 $ 3,435 (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. 2,494 $ 1,929 $ $ 639 2,839 THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended(1) amounts in millions Net Earnings Other Comprehensive Loss: Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other January 31 , 2016 February 1 , 2015 February 2, $ $ $ Total Other Comprehensive Loss COMPREHENSIVE INCOME $ 7,009 6,345 2014 5,385 (412) (34) (510) 11 1 (329) (12) (10) (446) (498) (351) 6,563 $ 5,847 (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. $ 5,034 You will use the WACC as the discount rate to conduct capital budgeting analysis for a project that the firm is considering and then decide whether it should be accepted or not which is \"Building a new Building\" for $1 million. Project: New Building (Home Depot) Cost: $1 Million