1. You are the Chief Financial Officer (CFO) of Allpha Company (Bangladesh) Ltd. You are...

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1. You are the Chief Financial Officer (CFO) of Allpha Company (Bangladesh) Ltd. You are considering two mutually exclusive proposals for further business expansion. The following facts are related to these two projects: In BDT Particulars Investment Proposal Investment Proposal A B Net cash outlay (t = 0) - 1,00,000 - 75,000 Net cash savings in operating expenses before depreciation and taxes: Year 1 25,000 18,000 Year 2 30,000 20,000 Year 3 35,000 22,000 Year 4 25,000 20,000 Year 5 20,000 16,000 Requirement: Determine the relevant cash flows of the two investment proposals assuming: (i) Depreciation through SLM, (ii) No salvage value, and (iii) 50% tax rate

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