Valuation : Question 3
Is there a formula that can be used to determine the change in normalised free cash flows or do these normalised free cash flows fade in an arbitrary manner until the company's ROCE is equal to its WACC?

There is no ready-made formula for determining cash flow fade. There are two levers that can be used for reducing ROCE: EBIT margin and asset turnover, over a period that you select. Depending on the sector and your perception of risk, you can modulate these levers so that ROCE equals WACC at the end of the year.

For more information, see chapter 31 of the Vernimmen.