3. A company has two mutually exclusive proposals competing with one another under consideration and provides you the following information : Proposal I Proposal II Net cash outlay (t = 0) 1,00,000 80,000 Net cash saving in operating costs before depreciation and taxes: Year 1 2 3 4 5 30,000 28,000 40,000 36,000 25,000 20,000 20,000 18,000 15,000 10,000 You are required to determine the incremental cash flows after tax assuming straight line method of depreciation, no salvage value and the firm's tax rate of 50%