The appropriate discount rate is a reflection of the inherent risk of the company. Note: Discount rates generally range between 6% and 12%. The calculation of discount rates is discussed in detail in Valuation (Workbook 11). The simple model below applies these assumptions. We have added the Total Free Cash Flow and Discounted Canh Flow in the rightmost column. The value of a company is the Dscounted Cash Flow of all future Free Cash Flow Therefore, this company is valued to be $136 dollars in the current year. Vou are now going to develop forecnts for this company. If the Growh Rate wa SN and the Discount Rate was 12\% what would be the value of the company (DCF)? If the Growh Rate was oN and the Discount Aate was 6 W what would be the value of the comoany (DCF)