WACC = 6.36%

company: Home Depot.

interest? taxes?

The parameters for the wook 7 project deliverable are as follows. . The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet) . The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. . The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project. . The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate. Signature Assignment Deliverables Prepare a narrated PowerPoint presentation that will highlight the following items. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project . Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project The following capital budgeting results for the project Net present value Internal rate of retum Discounted payback period. Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project ATEMENT OF EARNINGS DATA 2018 STOR to FOR Bare pe M 14,715 10 11 el no 12:41 TA EN SR VE 11 102 83 O compra 13 305 181 Coo 12 13.0 11 MO 155 INC ER 187 102 3 200 103 200 84 TS BALANCE SHEET DATA AND FINANCIAL RATIOS Tin w 40 44529 ST Ne property and GOS WETE 14 22,70 28 118 101041 12.40 22.005 24 267 144 TES 2 OP 41372 20 1100 22.11 20 12.50 2014 22.45 6300 SAT (178) PIES S. STATEMENT OF CASH FLOWS DATA 2,082 2.678 2.12 2442 1973 OTHER METRICS 201 Conds per where Plumber of 454 54 2291 235 35 45482 314 276 2.27 256 2.214 231 4 4.12 2.257 235 92 448. 1621 4 Careem Sepera) Customer actions 56 TE 41762 1 STO 63.00 67.30 1.544 10.36 150 STT 2010 2010 amount is pershared or were not STATEMENT OF EARNINGS DATA Net sales (5) Nato incre Eamninga before provision for Inom twee (5) Netering Net samnings increase (N) Duterteminge per share buted earnings per share increase (W) Diind wighted average number of common shares Gross proft- of sale Total operating expenses of Netearing of sales 110.225 1.9 14,715 31242 1.1 10.25 108,203 72 14.85 11,121 28.9 1,097 34. 33,5 1.149 13 10,2 10.3 BALANCE SHEET DATA AND FINANCIAL RATIOS Total (5) Woning capital (3) Merchandise inventores (5) Nutproperty and equipment (5) Long-term debt, excluding current installments (5) Stockholders (det) equity (5) Total debt-to-equity (%) Inventory tumover 01.236 1,435 14,831 22.770 28.670 2.116 (1,0104) 44.000 1,613 13.221 22.375 25 BCT 1.878) 01.5560) STATEMENT OF CASH FLOWS DATA Depreciation and amortization (5) Capital expenditures (5) 2,290 2.678 2,152 2.442 45.4 448 OTHER METRICS Return on invested capital (*) Cash dividends per share (5) Number of stores Real square footage at fiscal year-end Comparable sales increase (%) Sales per retail square foot (5) 2.291 238 35 454 82 1,616 2.287 238 52 445.86 1,621 terre The parameters for the wook 7 project deliverable are as follows. . The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet) . The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. . The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project. . The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate. Signature Assignment Deliverables Prepare a narrated PowerPoint presentation that will highlight the following items. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project . Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project The following capital budgeting results for the project Net present value Internal rate of retum Discounted payback period. Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project ATEMENT OF EARNINGS DATA 2018 STOR to FOR Bare pe M 14,715 10 11 el no 12:41 TA EN SR VE 11 102 83 O compra 13 305 181 Coo 12 13.0 11 MO 155 INC ER 187 102 3 200 103 200 84 TS BALANCE SHEET DATA AND FINANCIAL RATIOS Tin w 40 44529 ST Ne property and GOS WETE 14 22,70 28 118 101041 12.40 22.005 24 267 144 TES 2 OP 41372 20 1100 22.11 20 12.50 2014 22.45 6300 SAT (178) PIES S. STATEMENT OF CASH FLOWS DATA 2,082 2.678 2.12 2442 1973 OTHER METRICS 201 Conds per where Plumber of 454 54 2291 235 35 45482 314 276 2.27 256 2.214 231 4 4.12 2.257 235 92 448. 1621 4 Careem Sepera) Customer actions 56 TE 41762 1 STO 63.00 67.30 1.544 10.36 150 STT 2010 2010 amount is pershared or were not STATEMENT OF EARNINGS DATA Net sales (5) Nato incre Eamninga before provision for Inom twee (5) Netering Net samnings increase (N) Duterteminge per share buted earnings per share increase (W) Diind wighted average number of common shares Gross proft- of sale Total operating expenses of Netearing of sales 110.225 1.9 14,715 31242 1.1 10.25 108,203 72 14.85 11,121 28.9 1,097 34. 33,5 1.149 13 10,2 10.3 BALANCE SHEET DATA AND FINANCIAL RATIOS Total (5) Woning capital (3) Merchandise inventores (5) Nutproperty and equipment (5) Long-term debt, excluding current installments (5) Stockholders (det) equity (5) Total debt-to-equity (%) Inventory tumover 01.236 1,435 14,831 22.770 28.670 2.116 (1,0104) 44.000 1,613 13.221 22.375 25 BCT 1.878) 01.5560) STATEMENT OF CASH FLOWS DATA Depreciation and amortization (5) Capital expenditures (5) 2,290 2.678 2,152 2.442 45.4 448 OTHER METRICS Return on invested capital (*) Cash dividends per share (5) Number of stores Real square footage at fiscal year-end Comparable sales increase (%) Sales per retail square foot (5) 2.291 238 35 454 82 1,616 2.287 238 52 445.86 1,621 terre