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Macvee Pty Ltd has sales of $40,000,000, cost of goods sold of $15,000,000, operating expenses of $7,500,000, depreciation is $5,000,000. Interest Expense of $3,000,000.

Macvee Pty Ltd has sales of $40,000,000, cost of goods sold of $15,000,000, operating expenses of $7,500,000, depreciation is $5,000,000. Interest Expense of $3,000,000.   Tax rate is 30%.     

  1. What is Macvee's net profit & operating cash flow?                        
  2. What is the dollar value of the Depreciation   'tax shield'?                    
  3. What is the dollar value of Interest cost deductibility?  

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