Campbell Soup Company is an international provider of soup products. Management is very interested in continuing to grow the company in its core business, while “spinning off” those businesses that are not part of its core operation.

Address: www.campbellsoups.com, or go to www.wiley.com/college/weygandt

Steps
1. Go to the home page of Campbell Soup Company at the address shown above.
2. Choose the annual report dated July 29, 2012.

Instructions
Review the financial statements and management’s discussion and analysis, and answer the following questions.
(a) What was the total amount of capital expenditures for the fiscal year ending July 29, 2012, and how does this amount compare with the previous year?
(b) What interest rate did the company pay on new borrowings for the fiscal year ending July 29, 2012?
(c) Assume that this year’s capital expenditures are expected to increase cash flows by $42 million. What is the expected internal rate of return (IRR) for these capital expenditures? (Assume a 10-year period for the cash flows.)