Question 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 30,000 28,000 2 40,000 36,000 3 25,000 20,000 4 20,000 18,000 5 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%