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In 2012, the Campbell Soup Company acquired Bothouse Farms for $1.55 bilion. This acquisition increased the level of vertical integration in Campbell, as Bolthouse Farms

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In 2012, the Campbell Soup Company acquired Bothouse Farms for $1.55 bilion. This acquisition increased the level of vertical integration in Campbell, as Bolthouse Farms owned and operated extensive farming operations where it produced many food items used in Campbel's products. Suppe that the value of produce gemided by resa tama atlar tha actuation would ha $25 milon per year for Camphal And that in addition Campbell could SAWA $75 million per year in fasts it would therwise spand in searching for and negatirting ever equivalent produce Howse the transaction cost of a acquisition lawyers' fees, relocating some production facilites paying severance to unnecessary employees, ctc.) required a one time payment of $40 milion. Assume that Campbell receives the produce related beneli in perpetuity. If the interest rate used to discount future earnings is 5%, wil is the presel value of the benefits to Comptel? The present value (PV) of not benefits to Campbelis PV=Smilion Freywarded to two damai place

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