Using the interest rate data and financial statements for Home Depot, Inc. posted below, answer the questions below using Microsoft Excel. You may want to refer to the footnotes to the financial statements online for additional clarification/information if necessary.

Requirements:

1. Review the interest rate data provided for 2017. Assume that the 10-year treasury rate is the applicable measure of return for excess cash balances. Do you agree with the average 2017 rate specified(note-you can disregard the slight time period differencebetween the calendar year and Home Depot's fiscal year)? Perform a calculation of the rate you would use (referencing only the materials provided) that either confirms the rate given, or provides an alternative. Support your answer.
2. Given your analysis above, calculate the amount of wasting cash for Home Depot for FY2017 using average balances for the year. Show your calculations and document the logic underlying your analysis.
3. Calculate the amount of total operating capital for Home Depot under each of the three models covered in class. Make sure you clearly show your calculations and identify the variables/assumptions you are using.
4. Calculate Home Depot's net operating profit after tax (NOPAT) for FY2017. Make sureyou clearly show your calculation and identify the variables/assumptions you are using.
5. Based on your analysis above, as well as our class lectures, what is your estimate ofHome Depot's return on invested capital for FY2017? Make sure you clearly show yourcalculation and identify the variables/assumptions you are using.