Company A is considering the acquisition of a firm in the Czech
Republic with a plan  to operate the
firm for 3 years and then reevaluate the holding with the below estimations

Free Cash flows are estimated as follows: 

Year 1 - 38.63M Czech Koruna (CZK), Year 2 - 44.33 M CZK, 
Year 3 - 50.48M CZK 
The third year terminal value is estimated at 375M CZK. 
The Czech Koruna's exchange rate is assumed to be .038 USD/CZK for
each year. Company A uses a WACC of 13 % for its domestic projects. So, the
PV of the FCF's for the firm is 363.78 M CZK or $13.82M. The Czech
firm has 1,000,000 shares outstanding and a debt to equity ratio of
1:1. Current market price is 185 CZK per share.

All monetary information (except per share) should be presented in CZK
millions (i.e., do not convert to USD).

Should company A make a deal if its policy is to never exceed a 20% premium
in any tender offer? To defend your position, you must prepare and
present an Excel template that includes the calculated fair value
premium over market.
What changes in the analysis or additional analysis do you suggest
before a final decision should be made?
Using the DCF methodology required in question 1, please take one of
your suggestions and reevaluate the buy-out. To complete this
question, you will have to present a second Excel template that
includes your new assumed values and supports your recommendations.
Further, please comply with the following:
Assumptions must be reasonable ? i.e., don?t select arbitrary values.
Some discussion should be provided that explains how you arrived at
your new assumed values.
Variable changes should be restricted to the discount rate, the FCFs,
and/or the terminal value. Please present only one set of assumptions
(e.g., do not submit a table that includes multiple values for the
same variables.)