Free Cash Flow (FCF) Forecast based on assumptions for Best and Worst Case Scenarios.Net Present Value (NPV) computation based on Cost of Capital, different Discounting Rates and Terminal Values.
Bid Values for Firms/Companies/Projects based on valuations, Initial investments, debt out standings, other conditions, considerations and projects Investment Criteria.
Calculate Best-Case and Worst-Case Prices.
Judy Abarca walks into your office. "Thanks for the best-case projections for Laredo. They were very helpful. I finished putting together some projections of the income statement and free cash flows for the Laredo worst-case scenario. I'd like you to take both sets of calculations and come up with a range of prices that Blue Mesa should pay for acquiring Laredo. Don't forget to calculate the terminal value of the project before making your recommendation.