Determination of Firm value 4)Free Cash Flow or"Going Concern value steps: Estimate the target firms free cash flows Estimate the target firms after-tax risk adjusted discount rate. Calculate the present value of the target firm’ s free cash flows Estimate the initial outflow of the acquisition Calculate the npv of the acquisition.Determination of Firm Value 4) Free Cash Flow or “Going Concern” value steps: • Estimate the target firm’s free cash flows. • Estimate the target firm’s after-tax riskadjusted discount rate. • Calculate the present value of the target firm’s free cash flows. • Estimate the initial outflow of the acquisition. • Calculate the NPV of the acquisition