You are building a reality-check DCF model to estimate the intrinsic value of ZScaler. You assume that ZScaler's assets depreciate at a rate of 4% a year and that it has zero leverage. If your forecast earnings in year 1 is $12.4M, asset is $451.9M, and gross investment (capital expenditure + change in net working capital) is $201.2M, what is your forecast of year 1 Net Investment?

Answer rating: 100% (QA)

To calculate the forecast of year 1 Net Investment you can use the following formula Net Investmen... View the full answer