QUESTION 3 (25 MARKS) Bukan Kaleng Kaleng Sdn Bhd is evaluating two projects of constructing two different luxury apartments in two towns in the state of Negeri Sembilan. The initial investments for both projects are RM160,000. The required rate of return for these projects is RM10%. The followings is estimated cash flow for the first 6 years.

Year	Kuala Pilah (RM)	Seremban (RM)
1	40,000	30,000
2	40,000	35,000
3	40,000	35,000
4	40,000	30,000
5	40,000	40,000
6	40,000	51,000

Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques:

1. Net Present Value, NPV (20 marks)

2. Profitability Index, PI

(5 marks)