I need some help with the following Free Cash Flow, Terminal Value and Discounted Cash Flow calculations:

• Calculate a five-year free cash flow for Steel Co., starting from Year 2.
• Calculate the terminal value of the cash flow after Year 6.
• Calculate the discounted cash flow value for Steel Co.

1. Use the valuation done as per Questions 1 to 3 and recommend whether to extend an acquisition offer and explain your decision
2. Discuss how you would approach a sensitivity analysis on the valuation of Steel Co. by answering the following questions
3. Identify the key parameters and assumptions that affect your DCF valuation of Steel Co. How will the following change the valuation (increase or decrease in the calculated value of Steel Co.

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