You are find a business for sale, project the cash flows, and calculate the NPV to determine whether the business is worth buying based on NPV and your overall evaluation. You may wish to visit a business broker website as they list businesses for sale, usually provide latest year cash flow and the price of the business. You need to: 1. Qualitatively assess the business. Why is it viable in the long run? If its not then choose another business as why would you perform a valuation and evaluation of a business you thought was not viable? 2. Predict cash flows based on your assessment of the business, changes you would make if any and how they affect CF's. You can also choose a growth rate to predict CF's but you have to justify the choice of g. 3. Choose a discount rate (k) - refer back to Outline 3. 4. Calculate PV, NPV and IRR. 5. Make a recommendation on the business decision. You need the benefit of all Outlines including Outline 4 to do the project. That is why I waited until now to discuss the project. This is the same process if acquiring a $10b business or a $100k business, its just the matter of the complexity in the structure of the deal and the amount of data needed to get the valuation and perform the evaluation.